12 Best Automotive Stocks to Invest in According to Analysts

7. General Motors Company (NYSE:GM)

Upside Potential: 24%

Number of Hedge Fund Holders: 64

General Motors Company (NYSE:GM) is one of the largest American automakers, producing vehicles under brands like Chevrolet, GMC, Buick, and Cadillac. The company is accelerating its transition to electric mobility with Ultium battery technology, powering models like the Chevrolet Bolt EV, GMC Hummer EV, and Cadillac Lyriq. GM is also investing in self-driving technology through Cruise, its autonomous vehicle division, and aims for an all-electric future with a carbon-neutral goal by 2040.

On February 4, 2025, General Motors Company (NYSE:GM) announced that it acquired full ownership of Cruise, its autonomous vehicle subsidiary. This move consolidates the company’s control over Cruise’s operations and technology development. The acquisition aligns with its strategy to integrate autonomous driving capabilities into its vehicle lineup, aiming to enhance safety and efficiency. As discussed in December by the company, the ensuing streamlining of operations would potentially reduce annual expenditures by over $1 billion.

The investment management company Hotchkis & Wiley Funds talked about the company in its “Hotchkis & Wiley Large Cap Value Fund” Q3 2024 investor letter. He stated:

“General Motors Company management provided a cautious outlook for the second half of 2024. Comments from GM mirrored those of other OEMs and auto suppliers, leading investors to believe the automotive cycle has peaked. We believe this is an overreaction, and we continue to view GM as an attractive investment. We like GM for many reasons. First, we believe GM has leading market positions in its main business segments. Second, the valuation is extremely attractive. Finally, it is a strong free cash flow generator, and the management team is committed to repurchasing their undervalued shares.”

On January 21, 2025, Deutsche Bank upgraded General Motors Company (NYSE:GM) from Hold to Buy, raising its price target from $56 to $60. The analyst cited the company’s recent strategic decisions, including pausing development of its Cruise robotaxi unit and restructuring its struggling China operations, as key factors behind the upgrade. Additionally, Deutsche Bank expressed confidence in General Motors Company (NYSE:GM)’s strong execution track record and aggressive share buyback strategy, which they believe position the company well despite potential policy challenges for the electric vehicle industry under the Trump administration.