12 Cheap EV Stocks to Buy According to Hedge Funds

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1. General Motors Company (NYSE:GM)

Forward P/E: 4.16

Number of Hedge Fund Holders: 68

General Motors Company (NYSE:GM) is a multinational automotive corporation that designs, manufactures, and sells a range of vehicles through its brands including Chevrolet, Buick, GMC, and Cadillac. The company offers a wide range of EVs and gasoline-powered vehicles. General Motors Company (NYSE:GM) ranks among the best cheap EV stocks to buy. The company has reported consistent growth in EV sales throughout 2024. This helped General Motors Company (NYSE:GM) double its share in the EV market. The company sold 42,000 EVs in Q4, an increase of 10,000 compared to Q3 and nearly twice the sales compared to Q2. For the full year 2024, General Motors Company (NYSE:GM) reported that EV sales increased by 125%.

On March 6, TD Cowen initiated coverage on General Motors Company (NYSE:GM) with a “Buy” rating and set a price target of $105. The firm named GM as its top pick in the automotive sector. The analyst highlighted the company’s distinct advantage over other automakers derived from its Truck Franchise, which contributes significantly to its earnings. Additionally, General Motors Company’s (NYSE:GM) EV strategy is seen as uniquely positioned to help increase the stock’s value. TD Cowen expressed confidence in the company’s strong management execution as well as growth potential in EVs, autonomous vehicles (AVs), and software.

Overall, GM ranks first among the 12 cheap EV stocks to buy according to hedge funds. While we acknowledge the potential of EV companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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