General Motors (GM) Stock Gains Despite Growing China-Linked Competition Concerns

TLDR

• GM stock rose about 3% as CFO Paul Jacobson discussed growing competitive pressure in the U.S. auto market.
• Jacobson told the Financial Times the U.S. is becoming an “outlet” for global automakers squeezed by China in other markets.
• Trump recently said he’d be open to Chinese automakers building U.S. plants if they hire American workers.
• GM beat Q2 estimates with $3.57 adjusted EPS on $48.03 billion in revenue.
• Cox Automotive forecasts a 5.2% drop in GM’s U.S. sales for Q3, with market share also under pressure.

---

General Motors stock climbed roughly 3% recently as CFO Paul Jacobson addressed a topic that’s been quietly building all year. He told the Financial Times the company plans to run as lean as possible heading into a tougher competitive stretch.

General Motors Company, GM

His reasoning centers on a global shift. Automakers getting squeezed by Chinese competition in other regions are increasingly turning to the U.S. market as a safe haven.

That’s because the U.S. has effectively banned Chinese car imports. Jacobson didn’t comment directly on whether Chinese brands might set up shop domestically, but the timing of his remarks is hard to ignore.

Trump’s Comments Add a New Wrinkle

Last week, President Trump said he’d “be OK” with Chinese automakers building plants on U.S. soil. His one condition: they’d need to hire American workers.

That statement alone stirred up fresh concern among Detroit’s legacy players. It suggests the import ban might not be the permanent shield some assumed it was.

Jacobson’s FT interview reads as a direct response to that uncertainty. GM wants to be positioned to compete even if the playing field changes.

None of this is happening against a backdrop of weak earnings, though. GM actually beat expectations last quarter.

The company posted adjusted EPS of $3.57, topping the $3.19 consensus estimate. Revenue came in at $48.03 billion, ahead of the $47.01 billion analysts had penciled in.

Year over year, revenue was up 1.9%. Wall Street still likes the stock too, with a “Moderate Buy” consensus rating and an average price target of $98.14.

The Sales Picture Looks Less Rosy

Despite the earnings beat, near-term demand signals aren’t as strong. Cox Automotive projects GM’s U.S. new-vehicle sales will fall 5.2% year over year in the third quarter.

Separate forecasts point to GM and Ford both losing U.S. market share in 2026. Buyers are leaning toward fuel-efficient and hybrid options as gas prices stay elevated, and GM’s hybrid lineup is thinner than some rivals.

Hyundai, for example, is expected to outsell Ford in hybrids this quarter. That’s the kind of gap Jacobson’s “lean” strategy is presumably meant to help close.

On the product side, GM has been busy. It just unveiled redesigned 2027 Chevrolet Silverado HD and GMC Sierra HD trucks with a new 8.3-liter Duramax diesel V8 making 555 horsepower and 1,230 pound-feet of torque.

That torque figure edges out Ford’s diesel offering. GM is also rolling out EVs using battery cathode materials made from 100% recycled nickel, cobalt, and manganese sourced from old GM batteries.

On the insider front, activity has leaned toward selling. President Mark Reuss sold 71,079 shares at an average price of $89.97 in late July under a pre-arranged trading plan, cutting his stake by over 43%.

EVP Rory Harvey also sold stock the same week. Over the past 90 days, insiders have sold roughly $49 million worth of GM stock combined.

Institutional ownership remains heavy, at nearly 93% of outstanding shares. GM’s next earnings report will be the clearest test of whether Jacobson’s competitive concerns are already showing up in the numbers.