General Motors reported strong earnings on Tuesday on robust prices, as the Detroit giant expressed hope for a return to profitability in China and reiterated a flexible approach to investing in electric vehicles.

The major U.S. automaker raised some of its full-year profit forecasts as it reported better-than-expected third-quarter results, boosting share prices.

“I am proud that GM is delivering our best vehicles ever with strong financial results. But I want to be clear that we do not confuse progress with victory,” Chief Executive Mary Barra said in a letter to shareholders.

“Competition is fierce and the regulatory environment is getting tougher.”

GM reported third-quarter profit of $3.1 billion, essentially in line with the same period last year.

Sales rose 10.5 percent to $48.8 billion, although global auto deliveries fell 8.8 percent due to lower sales in GM markets.

GM’s operating income was once again dominated by North America, where the automaker highlighted reboots of popular sport utility vehicles and internal combustion engine (ICE) trucks – larger vehicles with big profit margins.

GM has been warning investors for months that it expects high prices to ease as vehicle supply increases. But Chief Financial Officer Paul Jacobson told reporters on a conference call that the company had not yet seen any deterioration in prices.

GM’s strategy is based on maintaining strong profitability in conventional vehicles to fund billions of dollars in new electric vehicle (EV) capital projects.

In the third quarter, GM achieved about 10 percent of the U.S. electric vehicle market share after introducing the Chevrolet Equinox. GM is planning more new EV offerings in 2025 and expects economies of scale to bring the company closer to the overall profitability of electric vehicles.

Jacobson said GM expects to lose between $2 billion and $4 billion less on electric vehicles next year as the company ramps up production. On Tuesday, he said about a third of the company’s capital program still goes toward internal combustion engine vehicles.

GM recently held an investor day at a manufacturing facility in Tennessee that can produce both types of vehicles depending on demand.

“We’re really guided by the customer,” Barra said in a conference call with analysts. “There were cases where we waited until the last moment to make a decision: are we going to develop a next generation version of ICE?”

– China Performance –

GM reported a loss in China equity earnings for the third straight quarter.

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Executives noted that the company’s performance in China improved compared to the previous quarter and that its inventory levels in the country fell. However, GM will hold meetings with its Chinese joint venture partner in the fourth quarter to restructure the company.

“We believe we can recover the losses,” Barra told analysts, citing China’s huge consumer market.

China has a “very challenging environment,” she said. “But we believe there is a place where we can participate in a completely different way and do so profitably.”

Barra said GM is also focused on attracting partners to finance its autonomous cruise company Cruise, which relaunched earlier this year after a stop in San Francisco due to safety issues.

“We want to make sure we invest in autonomy as efficiently as possible,” she said. “There are a number of conversations we are having with partners that I believe will enable us to manage this investment more wisely.”

Shares of GM rose 8.2 percent in morning trading.

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