8 Most Promising Car Stocks According to Hedge Funds

3. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 68

General Motors Company (NYSE:GM) is the biggest automaker in the United States in terms of sales. It is the owner of the GMC, Buick, Chevrolet, and Cadillac brands. Following a report by Bloomberg that the Trump administration could temporarily exempt manufacturers from Mexican and Canadian tariffs, its shares surged by 5% on March 5, 2025. If the Trump administration’s tariffs are applied to the firm, which has large operations in Mexico, the automaker would probably have to drastically increase the cost of its cars.

A notable run of more than 17% over the past year has helped General Motors Company (NYSE:GM) win over investors recently. This is mostly due to the firm’s gradual but consistent advances, which resulted in 2.7 million cars sold in the United States in 2024, a 4% gain over 2023 and the company’s highest year-on-year sales growth since 2019.

The company has been smart about fleet modifications that have allowed it to stay in touch with customers, whether it is through high-margin best-sellers like its Cadillac Escalade SUV or Silverado pickup, or its more economical Trax crossover and emerging Bolt EV line. China is seeing a spike in vehicle deliveries, which reached over 1.8 million last year. General Motors Company (NYSE:GM)’s relatively high growth in 2024 compared to its peers suggests that it will continue to be important for some time in the future. It is still a leading brand in the lucrative North American market, including it in our list of the Most Promising Stocks.

General Motors Company (NYSE:GM) has shifted its focus to driver-assist technologies that offer more immediate potential for revenue rather than continuing to develop robotaxis, a venture that would require significant time and resources to expand in a more competitive industry. This change has given the business the opportunity to evaluate customer demand for these features, with promising outcomes. After their three-year trial term expired in 2024, about 20% of the almost 18,000 Super Cruise users decided to keep their subscription, according to CEO Mary Barra.