GM Shares Climb 3.29% But Drop to 283rd in Trading Activity as Production Shifts and Tariffs Shape Mixed Investor Sentiment

On August 22, 2025, General Motors (GM) shares rose 3.29% with a trading volume of $0.37 billion, down 20.32% from the previous day’s volume. The stock ranked 283rd in trading activity, reflecting mixed investor sentiment amid strategic shifts and tariff-related challenges.

GM is reshoring production to counter 25% U.S. import tariffs, redirecting over 650,000 Mexican-made vehicles to U.S. sales and investing $4 billion in domestic manufacturing. This includes expanding facilities in Michigan, Kansas, and Tennessee, aiming to add 300,000 units of high-margin truck and SUV capacity by 2027. The move reduces exposure to cross-border costs and aligns with state incentives like New York’s Excelsior Jobs Program.

Collaborations with Hyundai and domestic suppliers are central to GM’s cost-saving strategy. A joint development of five models by 2028, including a commercial van, is projected to cut per-unit costs by 20%. Battery sourcing diversification, including temporary LFP imports from CATL and domestic partnerships with LG Energy Solution, aims to offset margin pressures. GM also secured U.S. rare earth magnet supplies, reducing reliance on foreign materials.

The 2026 EV lineup, including the $30,000 Bolt EV and Cadillac Escalade IQ, leverages LFP technology for cost efficiency and range. Software monetization through Super Cruise and OnStar services generated $4 billion in deferred revenue in 2025, creating recurring income streams amid thin hardware margins. Analysts project the Bolt could drive $200 million in 2026, with revenue growth expected by 2027.

A backtest of a strategy buying the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 showed a 1-day return of 0.98%, total return of 31.52% over 365 days, and a Sharpe ratio of 0.79. The strategy’s highest daily gain was 4.95%, while the lowest was -4.47%, highlighting its short-term momentum capture amid market volatility.