12 Best EV Stocks to Buy for The Long Term

2) General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 64

3-Year Sales Growth: 13.8%

General Motors Company (NYSE:GM) is engaged in designing, building, and selling trucks, crossovers, cars, and automobile parts. The company’s aggressive push into the EV market is expected to fuel a long-term growth trajectory. General Motors Company (NYSE:GM) can benefit from domestic battery production and a flexible manufacturing system which is anticipated to continue to help reduce battery costs. With the continuous improvement in battery technology and scaling up of production, the company can offer more affordable EVs, resulting in expansion of customer base and market share in the dynamic EV segment. The company expects that the momentum it has in both ICE vehicles and EVs will drive results again in 2025.

General Motors Company (NYSE:GM)’s investments in domestic battery production, together with a flexible manufacturing system, can offer it a competitive advantage associated with cost and supply chain resilience. For 2025, General Motors Company (NYSE:GM) targets to wholesale 300,000 EV units, anticipating $2 – $4 billion in EV profitability improvements. General Motors Company (NYSE:GM) noted that EV adoption has been higher in luxury segments.

A big focus of the company is on improving EV profitability. General Motors Company (NYSE:GM) achieved “variable profit positive” on its EVs in Q4 via continued manufacturing scale and efficiencies coming from increased production, improvement in material cost, including lower cell cost from scale and performance, and expansion of the EV portfolio with the roll-out of the Cadillac Escalade IQ and Sierra EV. To provide a brief context, variable profit positive on EVs means that the revenue garnered from selling the EVs is outpacing the direct costs of manufacturing them.