6. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 78
General Motors Company (NYSE:GM) is one of the leading automotive designers and manufacturers of cars, trucks, and automotive parts in the US and internationally. The company operates through the following segments GM International, GM North America, GM Financial, and Cruise. General Motor Company (NYSE:GM) is one of the best autonomous vehicle stocks as it was held by 78 hedge funds in Q1 2024, with total stakes worth $4.79 billion. Diamond Hill Capital is the top shareholder of the company, with a position worth $496.71 million as of August 11.
General Motors Company (NYSE:GM) is actively involved in the development and deployment of autonomous vehicles through its subsidiary Cruise. The company has been testing its vehicles in various locations; one of the latest developments during Q2 of 2024 was the restart of self-driving vehicle operations in Houston, Phoenix, and Dallas.
The company has been making notable advancements in both the electric and autonomous vehicle categories. During the second quarter, General Motors Company (NYSE:GM) was able to improve its US electric vehicle deliveries by 34% subsequently, demonstrating strong momentum in its EV portfolio. On the autonomous vehicle front, the company was able to reduce its Cruise operational expenses by $150 million year-over-year, reflecting operational sustainability and technological advancement in production. Overall, the company was able to grow its revenue by 7% year-over-year to reach $48 billion on the back of higher wholesale volumes and stable prices across North America.
The competitive edge of the General Motors Company (NYSE:GM) lies in its ability to capitalize on the automotive market through its sales volumes and its investment spending in research and development. Management of the company has been focused on reducing regulatory concerns related to its AV vehicle and has decided to focus their next generation autonomous vehicle on the Chevrolet Bolt EV instead of the Origin. This is a strategic move, which will not only alleviate regulatory concerns but will also reduce per-unit costs.
General Motors Company (NYSE:GM) presents an attractive entry point for investors. It’s trading at 4 times its forward earnings, which is a 72% discount to its sector. Moreover, the earnings of the company are also expected to grow by 52.4% during the year to reach $1.89. 29 analysts have a consensus Buy opinion on the stock, with their median price target of $55 presenting an upside of 27% from current levels.
Diamond Hill Large Cap Strategy stated the following regarding General Motors Company (NYSE:GM) in its first quarter 2024 investor letter:
Other top contributors included Allstate, Caterpillar and General Motors Company (NYSE:GM). Automobile manufacturer General Motors continues capitalizing on the shift to electric vehicles (EVs) while maintaining the strength of its core gas-engine truck and SUV business. Though it has experienced some setbacks — such as needing to roll back its Cruise driverless car project — we believe the company remains well-positioned relative to secular tailwinds within the automobile business.
