GM

Here are just two pieces of news which came this week, motivating me to buy a stake in General Motors. The first and foremost thing that knocked on my news feed was an announcement that GM signed a deal with Norway's Vianode firm, which is now going to provide the vehicle maker with graphite anode materials. Regular delivery is necessary for GM to succeed in making enough quantities of its own modern electric batteries. The Ultium Cells joint venture between GM and LG Energy Solution will produce the EV batteries. What is important is that it is a multi-year effective, from 2027 through to 2033.

The project will not only help to advance GM battery technology to drive greater value to its customers, according to GM's senior vice president Mr Jeff Morrison, but it could also make a quite resilient supply chain through GM for other North-American EV makers. The point is that the entire Western ecosystem depends upon the import of critical graphite-based minerals, while China continues to control nearly 95% of the world's supply of natural graphite. However, Vianode will supply its alternative synthetic graphite. Its plant could be located in either the U. S. or Canada, close to GM facilities. Their plans are to produce 80,000 tons of synthetic graphite per year, which would be enough to supply 1.5 million electric cars. Vianode now has its first production plant in Norway. Besides, synthetic graphite reportedly has a 90% lower CO2 footprint than conventional graphite materials used in the industry, with the production process also scaling up easier compared to a normal mining. The situation will give GM a good chance to compete with Tesla as the undisputed American EV leader, joining the global race for cheaper Chinese competitors, as Chinese EVs would probably face Trump's tariff barriers eventually.

Another news was that the U.S. NHTSA regulator, an abbreviation for The National Highway Traffic Safety Administration, closed its probe into GM Cruise self-driving vehicles over pedestrian risks. Concerns and the probe since October 2023 were all about the extent to which GM-produced Cruise robotaxis are taking sufficient precautions after five incidents involving a collision between a Cruise vehicle and a pedestrian, including three that involved injuries. When ending its investigation, NHTSA cited Cruise's November 2023 recall and GM's decision to cease Cruise operations, so that GM was ending its money-losing robotaxi development, with no funding work on self-driving robotaxis after investing more than $10 billion since 2016. It is quite clear that Tesla, which has received the necessary permits, is technologically stronger and is going to develop its robotaxi muscles, will dominate the robotaxi market. However, cutting losses by GM is probably not bad news for GM, following a $500,000 fine because of submitting a report, officially recognized as a false one, in order to influence a federal investigation in November.

Tesla certainly remains the market's favourite, and one of my own favourites as well in 2025 in terms of growing its market share and Elon Musk's political clout. However, GM shares could also climb gradually toward the $60s on the back of the listed news.