TLDRGeneral Motors shares advanced 3% to $79.29 Thursday despite reporting a 5.5% decline in third-quarter U.S. vehicle deliveries.The automaker delivered 670,974 vehicles in Q3, marking a year-over-year decrease as electric vehicle sales plummeted.Toyota’s deliveries increased 0.6%, with electrified vehicles and hybrids comprising 57% of its sales mix.Honda reported a 9.3% sales increase, driven by unprecedented hybrid vehicle demand.Analysts maintain a Strong Buy rating on GM with an average price target of $111.14, suggesting approximately 40% potential upside.General Motors stock (GM) surged 3% to reach $79.29 during Thursday’s trading session. The gain occurred despite the Detroit automaker revealing a 5.5% decline in third-quarter U.S. vehicle deliveries.General Motors Company, GMThe company moved 670,974 new vehicles throughout the three-month period. This represents a decrease compared to the corresponding quarter last year, which saw electric vehicle sales reach unprecedented levels.Year-over-year EV comparisons largely account for the decline. Previous year figures were boosted by consumers racing to secure a $7,500 federal tax credit for electric vehicles before its expiration.GM’s electric vehicle segment experienced significant declines this year. Equinox EV deliveries plummeted 92%, while Hummer EV sales tumbled 73%.The automaker lacks a substantial hybrid vehicle portfolio to cushion these losses. With only the Corvette offering a hybrid powertrain, this strategic gap is becoming increasingly apparent.Japanese Automakers Capitalize On Hybrid DemandToyota avoided this challenge entirely. The Japanese manufacturer reported a 0.6% sales increase to 633,223 units, while electrified vehicle deliveries, including hybrids, surged 28.5%.This solid performance allowed Toyota to close its sales gap with GM to just under 136,000 units. Twelve months earlier, that difference exceeded 335,000 units.Honda delivered an even more impressive performance. The company’s deliveries jumped 9.3%, with hybrid vehicle sales exceeding 106,000 units—a new company benchmark.“We’re finding more and more consumers are figuring out hybrids meet their needs,” said Lance Woelfer, head of American Honda’s U.S. sales.Elevated fuel prices are creating additional headwinds for GM. With the national average reaching $4.41 per gallon, demand for the large trucks and SUVs that form GM’s sales backbone faces mounting pressure.Bright Spots In GM’s PortfolioThe quarter wasn’t entirely negative. GM’s budget-friendly compact SUV range, featuring the Chevy Trax and Buick Envista, achieved record quarterly deliveries.Trailblazer sales climbed 51%, Envista increased 18.4%, and Trax deliveries rose 16.3%. The company also highlighted its dominant position in full-size pickup trucks and fleet vehicle sales.Cadillac represented a trouble spot, declining 25% year-to-date. Every GM brand has posted lower sales through the first three quarters of the year.GM president Duncan Aldred maintained an optimistic outlook, emphasizing the forthcoming next-generation Silverado and Sierra pickup trucks. Dealer shipments are anticipated to begin during the fourth quarter.Despite disappointing sales figures, Wall Street remains bullish on the stock. GM holds a Strong Buy consensus rating supported by 14 Buy recommendations issued over the past three months.The average analyst price target stands at $111.14, indicating roughly 40% upside potential from current trading levels.Additional automakers releasing quarterly results Thursday included Stellantis, essentially unchanged with Ram surging 29%; Nissan, advancing 1.4%; Hyundai, climbing approximately 3%; and Kia, jumping 7.8% with a record 236,659 units delivered during the quarter.The post Why General Motors (GM) Stock Rallied Despite 5.5% Quarterly Sales Decline appeared first on Blockonomi.