GM China sales top 358,000 in third quarter as NEV share exceeds 60%

StoneX reiterated a Buy rating on General Motors (NYSE:GM) with a $105.00 price target, raising its EPS estimates for 2026 and 2027. GM's stock is up 44% over the past year. The firm cites truck and SUV profitability, cash generation, and share repurchases. GM reported a 5.5% decline in Q3 U.S. vehicle sales, including lower EV demand, and secured a $697.7 million contract modification for GM Defense. UBS raised its price target to $114, citing digital growth opportunities.

General Motors reported a quadrupling of private investment in North American automotive fixed assets since the USMCA ratification. In 2025, it spent $9.3B on capital expenditures, down 14.1% from 2024, as part of its EV transition strategy. For 2026, it projects $10B-$12B in investments, including automotive operations and battery ventures. Since 2018, automakers have announced $346B in U.S. investments, driving job creation and compliance with USMCA rules.

General Motors' joint venture Ultium Cells will produce cheaper, high-energy-density lithium-manganese-rich (LMR) batteries in Tennessee. The LMR batteries, with 65% manganese and 35% nickel, will be used in full-size trucks and SUVs, offering up to 400 miles of range. GM is the second-largest EV seller in the U.S. The $1 billion factory expansion is expected to be completed by 2028, adding 500 jobs.

GM will end light-duty Silverado 1500 production in Oshawa, Ontario, in November, replacing it with GMC Sierra HD by 2028. The $144M investment follows labor talks, maintaining current employment levels. The plant currently produces Silverado models, with 2026 output expected at 114,000 trucks. GM also invested $215M in its St. Catharines propulsion plant. U.S. tariffs on Canadian-made cars are impacting Ontario's auto sector.

Ultium Cells, a GM-LG Energy Solution joint venture, is investing $1 billion to upgrade its Spring Hill battery plant for next-gen EV cells. The 2028 project will create 500 jobs and focus on prismatic LMR batteries, aiming to reduce costs and improve performance. This follows prior investments of over $2 billion at the site.

GM faces a class action lawsuit over alleged defects in the continuously variable transmission (CVT) of certain Chevrolet and GMC vehicles, including the Chevy Malibu, Trailblazer, Equinox, and GMC Terrain. The complaint claims the defects cause slipping, hesitation, and loss of propulsion, posing safety risks. GM is accused of knowing about the issues since 2021 and failing to address them effectively. The lawsuit also alleges improper handling of warranty claims.