Wells Fargo analyst Colin Langan maintained an Underweight rating on General Motors (NYSE: GM) and raised the price target to $60 from $59. The adjustment reflects a revised outlook on the automaker's stock performance.

Rating and Price Target

The research note updates the investment stance on General Motors without altering the Underweight recommendation. The price target increase represents a modest adjustment in the valuation expectation.

New and used car sales in California could halt starting July 1 if the state does not postpone parts of a law protecting domestic violence survivors, according to the Alliance for Automotive Innovation. The group, representing General Motors Co. and Toyota Motor Corp, stated that a bill moving through the state legislature would push back deadlines tied to in-car technology requirements that cannot be met on the current schedule.

The auto industry has already implemented protections required by the 2024 statute, including an online pathway for drivers to request termination of another person's access to connected services. However, the consortium noted that remaining deadlines involve in-vehicle systems requiring significant engineering work, validation, and integration across multiple models and model years.

Implementation Challenges

The Alliance for Automotive Innovation highlighted that the industry has rolled out a documented request process to cut off another driver’s remote access within two business days. Additionally, an in-vehicle option allowing drivers to disable location access has been introduced.

Despite these steps, the group emphasized that the complexity of updating in-vehicle systems means the July deadline is unrealistic without a delay. The specific requirements include technical modifications that affect various vehicle lines.

Background on Tracking Concerns

The report referenced past instances where drivers alleged automakers did not assist women being tracked by partners. This included a lawsuit involving Tesla Inc., which was not successful. The lawsuit involved a woman who alleged her husband, under a restraining order, tracked her movements using the Tesla smartphone app for their 2016 Model X.

The legislation aims to address these gaps by mandating faster response times and built-in disabling features for location services.