Key Stats for General Motors Stock
- Price change for General Motors stock in last 6 months: -2%
- $GM Stock Price as of Oct. 21: $77
- 52-Week High: $92
- $GM Stock Price Target: $101
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What Happened?
General Motors (GM) has canceled a long-term supply deal with e-VAC Magnetics, which is the US unit of Germany’s Vacuumschmelze, or VAC. The two sides are now in arbitration, Reuters reported.
VAC signed the deal with GM in 2023 and was meant to supply magnets for GM’s electric vehicles from a new plant in South Carolina.
The plant opened late last year, and about 90% of its output was set to go to GM.
According to the filings, the dispute began in April 2026. GM ended the agreement on July 1, and VAC’s US unit says GM ended it wrongfully and wants damages.
GM’s SEC filing this week mentioned an arbitration with an EV motor supplier but did not say why GM canceled.
Energy Fuels agreed in June to buy VAC for $1.9 billion.
It says the price could be adjusted depending on how the arbitration turns out and also says it has no concerns about VAC’s ability to make magnets.
GM and Energy Fuels declined to comment.
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What the Market Is Telling Us About General Motors Stock
The story points to a bigger issue. China makes about 90% of the world’s permanent magnets, and Western companies are finding it hard to build their own supply.
For General Motors stock, the direct impact looks limited, given it has been scaling back its EV business. In January, it took a $6 billion charge to unwind some EV investments.
The magnet deal was built for an EV plan that has changed.
Management also said on its Q3 call that EV losses are shrinking and GM expects to cut EV losses by $1 billion to $1.5 billion this year.
The core business is doing well. Q3 revenue was a record $50 billion and adjusted EBIT was $4.1 billion, up 22%. GM also announced a new $20 billion share buyback.
Costs are the bigger worry for General Motors stock as it expects about $2 billion in headwinds this year from commodities, logistics, and memory costs. Copper prices are at record levels.
The arbitration could bring a payout or a legal cost and no one has said how large either could be.
For now, General Motors stock is more likely to follow truck sales and cost trends than this dispute.
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So what is General Motors stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
