5 EV Stocks to Buy as Tesla’s Market Share Declines

1. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 76

General Motors Company (NYSE:GM) is the largest American automaker that specializes in traditional and electrified vehicles. On June 21, the company announced that it is planning to cover $5 billion in elevated supply chain costs by increasing prices and lowering expenses. However, this has not impacted the robust demand across the GM portfolio. The company also reaffirmed on July 1 its FY2022 net income guidance ranging between $9.6 billion and $11.2 billion, and EPS-diluted guidance range of between $5.76 and $6.76. 

In the U.S. autos and industrial technology sectors, Goldman Sachs analyst Mark Delaney lowered estimates and price targets to accurately factor in supply chain constraints in the short-term and softer demand in the medium-term. The analyst reiterated a Buy recommendation on General Motors Company (NYSE:GM) on June 1, but cut the price target on the stock to $46 from $59. 

Among the hedge funds tracked by Insider Monkey, 76 funds were long General Motors Company (NYSE:GM) in Q1 2022, compared to 90 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the biggest shareholder of the company, with over 62 million shares worth $2.7 billion. 

Here is what Oakmark Global Fund has to say about General Motors Company (NYSE:GM) in its Q1 2022 investor letter:

“General Motors (NYSE:GM) was a detractor during the quarter, due to increased macro uncertainty, higher fuel prices, and concerns over rising input costs, which pressured the company in particular and the auto industry as a whole. While we are closely monitoring the potential impact of these dynamics, industry demand remains robust, driven by strong consumer balance sheets and pent-up demand after multiple years of constrained production. We also remain confident in GM’s ability to navigate a complex operating environment, which the company has consistently demonstrated over the past few years. Finally, the long-term picture remains bright. We believe GM is significantly undervalued, is well-positioned for the long-term transition to electric vehicles and has numerous needle-moving ancillary business opportunities (most notably Cruise, which is an industry leader in autonomous vehicle technology) that are under-appreciated.”

You can also take a look at Jim Cramer Recommends These 10 Stocks For Recession and Michael Burry is Buying These 10 Stocks As Recession Fears Mount.

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