1. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 78
Share Price as of August 7: $40.65
General Motors Company (NYSE:GM) is a leading American automotive manufacturer that designs and sells trucks, crossovers, cars, and automobile parts. The company is famous for its diverse portfolio, which includes well-established brands such as Chevrolet, GMC, Cadillac, and Buick.
General Motors (NYSE:GM) runs through GM North America, GM International, Cruise, and GM Financial segments. It offers other services to customers, including financing options, vehicle maintenance, and advanced connectivity features.
General Motors (NYSE:GM) tops our list of the best EV stocks under $50. The stock was held by 78 hedge funds in the first quarter and the total stakes amounted to $4.8 billion.
General Motors (NYSE:GM) is making significant strides in the EV market. As the first major automaker to offer modern EVs, the company initially provided its vehicles only through lease agreements. Now, the company is shifting its focus to electric vehicles, with plans to phase out the production of gasoline and diesel models by 2035.
It plans to ramp up its EV production to 1 million units annually in North America by the end of 2025. The company is introducing electric models across its main brands, including Chevrolet, Buick, GMC, and Cadillac.
A major part of General Motors’ (NYSE:GM) push towards an all-electric future involves its Ultium battery platform, which represents a significant technological advancement. The company is also converting facilities, like its Orion Assembly plant, to support EV production.
Its joint venture, Ultium Cells Holdings, is expanding to produce battery cells at a larger scale, which is important for meeting the ambitious production target of 1 million EVs by 2025.
In the second quarter, the company saw a 21% increase in EV deliveries compared to the previous year. It signifies the growing consumer interest in electric vehicles and the company’s progress in this area.
Diamond Hill Large Cap Strategy stated the following regarding General Motors Company (NYSE:GM) in its first quarter 2024 investor letter:
“Other top contributors included Allstate, Caterpillar and General Motors Company (NYSE:GM). Automobile manufacturer General Motors continues capitalizing on the shift to electric vehicles (EVs) while maintaining the strength of its core gas-engine truck and SUV business. Though it has experienced some setbacks — such as needing to roll back its Cruise driverless car project — we believe the company remains well-positioned relative to secular tailwinds within the automobile business.”
While we acknowledge the potential of General Motors Company (NYSE:GM) to grow, 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 NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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