Core Insights - General Motors (GM) is focusing on increasing revenues from software and services, generating nearly $2 billion year-to-date from offerings like OnStar and Super Cruise [1][9] - GM ended Q3 2025 with 11 million OnStar global subscribers, a 34% year-over-year increase, and expects to exceed 12 million by year-end [2][9] - The company is developing a next-generation software-defined vehicle platform aimed at reducing complexity and creating new revenue streams [3][4][9] Financial Performance - GM's deferred revenues rose 14% from Q2 2025 to almost $5 billion [1] - The company anticipates $200 million in Super Cruise revenues for 2025 [2] Competitive Landscape - Chinese EV makers, such as NIO and XPeng, are also enhancing their software-defined vehicles to unlock recurring revenues [5][6][7] - NIO is upgrading its NIO World Model platform to improve vehicle capabilities and build recurring revenue streams [6] - XPeng is focusing on its advanced XNGP system to drive long-term revenue through subscription-based software features [7] Stock Performance - GM shares have increased by 70% over the past six months, outperforming the industry growth of 48.2% [8] - GM currently trades at a forward price-to-sales ratio of 0.42X, lower than the industry average and its own five-year average [11]
How GM Is Gaining Momentum in Software and Services Heading Into 2026