General Motors’ Strategic Pivot Amid China’s EV Shift
General Motors (GM 1.26%), once crippled by the 2008 financial crisis, has rebounded with record $15 billion pre-tax profits in 2024—a 21% year-over-year surge. Yet its stock remains undervalued, presenting a potential October opportunity. Two factors stand out: a contrarian bet on China and unresolved EV tensions.
Analysts like John Murphy of "Car Wars" famously urged Detroit's "D3" to exit China, declaring the market "no longer core" after domestic EV brands decimated foreign automakers' share. GM defied the exodus, clinging to a fading stronghold where it once outsold its U.S. operations. The gamble reflects either stubbornness or long-game calculus—China's EV dominance isn't retreating, but global automakers might carve niches in premium or hybrid segments.
