Shares of General Motors (NYSE:GM) dropped 2.5% to $47.64 in premarket trading following a downgrade from brokerage Bernstein.
The firm lowered its rating from "outperform" to "market perform," citing several challenges, including pricing pressures, delays in electric vehicle production, and ongoing losses in the company's Cruise division.
Bernstein also warned of potential additional capital requirements that GM may announce during its upcoming October Capital Markets Day.
Despite the downgrade, Bernstein maintains a price target of $53, representing an 8% upside from GM's last closing price.
According to data from LSEG, 17 brokerages currently rate GM as a "buy" or higher, while 11 have a "hold" rating and 2 suggest "sell."
The median price target stands at $54.
Meanwhile, GM's share price has risen 36% year-to-date up to the last close.