Financial Performance - GM's Q2 2025 EBIT-adjusted was $30 billion[9, 47], with an EBIT-adjusted margin of 64%[47] - Adjusted automotive free cash flow was $28 billion[9, 47] - EPS-diluted-adjusted was $253[9, 47] - The company completed a $2 billion accelerated share repurchase program, retiring approximately 10 million shares during the quarter and approximately 43 million in total over the program[10] Sales and Market Share - GM's Q2 2025 U S market share increased by 07 percentage points year-over-year to 174%[9] - GM's overall sales were up 20% year-over-year in China, with NEV sales up 50%[10] - Q2 deliveries were 747k and H1 deliveries were 1440k[18] Electric Vehicles - GM maintained the 2 spot in EV sales in the U S with higher year-over-year sales and market share[9] - Chevrolet is now the 2 selling U S EV brand, and Cadillac is the 1 selling Luxury EV brand in the U S[9] - Q2 EV sales were up 111% year-over-year, representing 16% of the U S EV market[19] Investments and Capital Allocation - GM announced nearly $5 billion of investment in key U S manufacturing facilities[9] - The company is investing ~$900 million towards next-gen V8 engine production in Tonawanda, NY[24] - CY25 capital spend is projected to be $10–11 billion, including newly announced investments, with CY26-27 spend expected in the $10–12 billion range[9] Guidance and Tariffs - The company reaffirmed its 2025 guidance for EBIT-adjusted of $100–125 billion, EPS-diluted-adjusted of $825–1000, and adjusted automotive free cash flow of $75–100 billion[33, 34, 35] - The calendar year 2025 gross tariff impact is unchanged at $4–5 billion, with the company aiming to mitigate at least 30% of this impact[42]

Investment Overview - General Motors is investing $4 billion in U.S. plants over the next two years to enhance the manufacturing of gas and electric vehicles [1] - This investment will enable the company to assemble more than 2 million vehicles annually in the U.S., an increase from the previous production of approximately 1.7 million vehicles [2][4] Strategic Initiatives - The investment follows a recent allocation of $888 million for the Tonawanda Propulsion plant to support the production of the next-generation V-8 engine [1] - GM plans to expand production at various plants, including the Orion Assembly plant for gas-powered SUVs and light-duty trucks starting in early 2027 [7] - The Fairfax Assembly plant will begin producing the gas-powered Chevrolet Equinox in mid-2027, with significant demand noted as sales rose over 30% year over year in Q1 2025 [8] Market Context - The investments align with broader industry commitments to bolster U.S. manufacturing and support American jobs amid tariffs imposed by the Trump administration on imported vehicles and auto parts [3][6] - GM's CEO, Mary Barra, emphasized the belief that the future of transportation will be driven by American innovation and manufacturing expertise [2] Future Projections - GM's annual capital spending is projected to be between $10 billion and $12 billion through 2027, reflecting increased investment in the U.S. and prioritization of key programs [9]

Core Viewpoint - General Motors (GM) is poised to lead in electric vehicle (EV) battery innovation with its new lithium manganese-rich (LMR) battery technology, aiming for market introduction by 2028 [1][3]. Group 1: Battery Technology and Production - GM's LMR batteries are designed for full-size electric trucks and SUVs, replacing expensive materials like nickel and cobalt with more affordable manganese, which could lower raw material costs and enhance range and weight efficiency [2][3]. - The LMR batteries are claimed to have 33% higher energy density compared to current lithium iron phosphate (LFP) cells, allowing for more miles per charge without increasing costs [3]. - Production plans include preproduction starting in late 2027 and full commercial production in 2028 through Ultium Cells, a joint venture with LG Energy Solution [3]. Group 2: Competitive Landscape - Ford is also developing its own LMR battery chemistry at its Ion Park R&D center, with pilot production of second-generation cells already underway, aiming to launch LMR-powered EVs before the decade ends [4][5]. - Tesla has previously explored high-manganese batteries and holds patents related to LMR chemistry, but has not yet announced specific production plans [6][7]. Group 3: Market Performance and Valuation - GM shares have decreased by approximately 6% year to date, outperforming the industry's decline of 13% [8]. - The company trades at a forward price-to-earnings ratio of 5.28, significantly lower than the industry average, and holds a Value Score of A [10]. - The Zacks Consensus Estimate indicates a projected decline in GM's sales and EPS by 6% and 12% respectively for 2025, with downward revisions in estimates over the past month [12].