1. General Motors Company (NYSE:GM)
Year-to-date Share Price Returns: 24.41%
Number of Hedge Fund Holders: 72
General Motors Company (NYSE:GM) is one of the largest automotive companies in the world and offers vehicles through its lineup of well-known names like Chevrolet, Buick, GMC, and Cadillac. Its products include budget-friendly daily-use vehicles as well as high-end luxury vehicles.
The company is moving toward an all-electric future with its Ultium Platform, which is designed to provide great power, range, and performance across a variety of vehicles, including cars, SUVs, and trucks.
Some significant advancements in its portfolio include Ultifi, a software system that allows for updates, subscriptions, and app features to keep vehicles customized and up-to-date. It tops our list of hot EV stocks to buy now.
General Motors (NYSE:GM) has also introduced myChevrolet Mobile App that helps drivers manage range and find charging stations, which makes the switch to electric vehicles smoother. Its subsidiary, BrightDrop, is also changing the delivery industry with electric vehicles like the Zevo 600 delivery van and the Trace, an electric cart for short-distance transport.
Despite retracting most of its earlier EV sales targets, the company believes it is gaining momentum with an expanding lineup of all-electric vehicles. As reported by CNBC on September 23, the company’s president of global markets, Rory Harvey reported significant growth in EV sales, with nearly 21,000 units sold in July and August, which almost matches the total for the entire second quarter.
General Motors (NYSE:GM) currently offers eight models based on its Ultium platform, including the Chevy Equinox and luxury Cadillac vehicles, with plans to launch two more Cadillac models by year’s end.
The company expects to achieve profitability in its EV production once it reaches an output of 200,000 units. While it depends on the future of consumer demand for EVs, the company is aiming to go completely electric by 2035.
According to our Q2 database of over 900 hedge funds, 72 hedge funds had stakes in General Motors (NYSE:GM), worth $4.07 billion. As of June 30, Harris Associates holds 34.36 million shares of the company, valued at nearly $1.6 billion, making the firm GM’s most prominent shareholder.
Diamond Hill Capital stated the following regarding General Motors Company (NYSE:GM) in its Q2 2024 investor letter:
“Other top Q2 contributors included Extra Space Storage and General Motors Company (NYSE:GM). Shares of automobile manufacturer General Motors (GM) rose as its internal combustion engine business has also received a boost from the recent slowdown in electric vehicle adoption among consumers. GM also announced additional share repurchases in Q2, reinforcing its commitment to returning cash to shareholders.”
While we acknowledge the potential of General Motors (NYSE:GM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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