8 Best EV Stocks To Buy Right Now

2. General Motors Company (NYSE:GM)

Number of Hedge Funds Holders: 72

General Motors Company (NYSE:GM), known for brands like Chevrolet, Buick, GMC, and Cadillac, is focused on transitioning to an all-electric future through its vehicle lineup. However, on October 8, GM announced it would discontinue the “Ultium” branding for its electric vehicle batteries and technologies as part of a strategic review. Despite the branding change, GM will continue its EV and battery operations.

In July and August, GM sold nearly 21,000 EVs, approaching its second-quarter totals. The company is aiming for profitability in EV production at 200,000 units and remains committed to becoming fully electric by 2035. In the third quarter, U.S. retail sales rose by 3%, with 659,601 vehicles sold, while EV sales hit a record 32,095 units, marking a 60% year-over-year increase. GM plans to release five ICE models and two new EVs in the fourth quarter.

General Motors (NYSE:GM) released its Q3 earnings on October 22 which exceeded Wall Street’s third-quarter expectations, prompting the company to raise its 2024 guidance. The company reported adjusted earnings per share of $2.96, surpassing the expected $2.43, and revenue of $48.76 billion, higher than the anticipated $44.59 billion.

The company now projects full-year adjusted earnings before interest and taxes between $14 billion and $15 billion, up from previous estimates of $13 billion to $15 billion. It also raised its automotive free cash flow forecast to a range of $12.5 billion to $13.5 billion, up from $9.5 billion to $11.5 billion. Additionally, the automaker adjusted its net income forecast to between $10.4 billion and $11.1 billion, compared to earlier guidance of $10 billion to $11.4 billion.

According to the CEO, Mary T. Barra, General Motors (NYSE:GM) grew its U.S. retail market share with competitive pricing and well-managed inventories in Q3. In China, sales improved, and dealer inventory dropped significantly. The company remains on track to meet its 2024 EV production and profitability goals, benefiting from its dedicated EV platform, U.S. battery manufacturing, and flexible assembly capabilities, advantages that many competitors lack.

Diamond Hill Capital stated the following regarding General Motors Company (NYSE:GM) in its Q2 2024 investor letter:

“Other top Q2 contributors included Extra Space Storage and General Motors Company (NYSE:GM). Shares of automobile manufacturer General Motors (GM) rose as its internal combustion engine business has also received a boost from the recent slowdown in electric vehicle adoption among consumers. GM also announced additional share repurchases in Q2, reinforcing its commitment to returning cash to shareholders.”