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In early 2026, Canada’s industry minister disclosed past talks about a potential Chinese-Canadian electric vehicle plant, highlighting Magna International as a possible auto-parts partner in any joint-venture assembly project on Canadian soil.
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This government-led push positions Magna at the center of discussions about how Canadian manufacturing and software capabilities could plug into global EV supply chains.
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Next, we’ll examine how the prospect of Magna joining a Chinese-Canadian EV joint venture may influence its broader investment narrative.
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To own Magna, you need to believe a global auto-parts supplier with modest revenue growth, improving but still thin margins and a reliable dividend can keep earning its place on major vehicle programs. Recent talk of a potential Chinese-Canadian EV plant, with Magna flagged as a possible partner, adds an interesting twist but, for now, looks more like an option than a firm near term catalyst. The key drivers still sit with execution on current contracts, cost control and how much pricing pressure flows downstream from automakers as tariffs and EV program economics evolve. The same news also reinforces one of Magna’s biggest risks: heavy dependence on large OEM decisions and political currents it does not control. In that sense, the joint-venture chatter sharpens existing risks rather than creating entirely new ones.
However, one risk tied to tariffs and OEM pricing power deserves closer attention from investors. Magna International’s shares have been on the rise but are still potentially undervalued by 22%. Find out what it’s worth.
Two Simply Wall St Community valuations span roughly US$69.18 to US$94.25 per share, underlining how far apart individual investors can be. Set against unresolved questions around tariffs, EV profitability and OEM bargaining power, that spread shows why it can help to weigh multiple viewpoints before deciding how Magna’s story fits your portfolio.
Explore 2 other fair value estimates on Magna International – why the stock might be worth as much as 28% more than the current price!
Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.
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A great starting point for your Magna International research is our analysis highlighting 3 key rewards that could impact your investment decision.
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Our free Magna International research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Magna International’s overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MG.TO.
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