10 Best Car Stocks To Invest In Now

3. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 64

General Motors Company (NYSE:GM) is an American automotive company that sells trucks, cars, and auto parts and provides software-enabled services and subscriptions. It is best known for manufacturing and marketing vehicles under the Chevrolet, Cadillac, Buick, and GMC brands.

The company recently announced that it will fold its Cruise subsidiary, which was working on developing self-driving taxis, to shift focus to building fully autonomous vehicles for personal use. This has ended a years-long project that General Motors had spent billions of dollars on, leaving the field open for competitors such as Tesla and Waymo. However, the decision is expected to save the company $1 billion per year.

Analysts believe shunning the project will allow General Motors Company (NYSE:GM) to restructure its research and technical teams. The knowledge and competencies achieved in the development of Cruise can be used to improve driver assistance technology for personal cars.

On October 22, General Motors Company (NYSE:GM) announced financial results for Q3 2024. Revenue for the quarter was reported at $49 billion, up 10% from last year, driven by volume growth in both internal combustion engine and electric vehicles. Adjusted EBIT stood at $4.1 billion. Adjusted earnings per share (EPS) were posted at $2.96, beating market expectations by 53 cents and up around 30% year-over-year.

Following the announcement of these results, GM’s share surged 8%, reaching its highest trading price since February 2022. Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of 12%. Investor sentiment also remains strong, with 64 hedge funds having investments in the company, as of Q3 2024, making it one of the best car stocks to invest in now.