We recently compiled a list of the 12 Cheap EV Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where General Motors Company (NYSE:GM) stands against the other cheap EV stocks.
Ownership of EVs is rising in the US. On March 16, CNBC reported that currently there are nearly 6 million battery EVs and plug-in hybrids on the roads. While this represents only a small portion of the overall vehicle market, it marks significant progress and automobile manufacturers remain invested in the transition away from gasoline. It is worth noting that in 2024 sales of traditional internal combustion engine cars fell below 80% for the first time in modern history.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 8 Fastest Growing AI Stocks To Buy Right Now.
The steady growth in EV sales suggests that consumer concerns about range anxiety are diminishing. However, this fear of running out of battery power remains a challenge for the EV market. The EV industry is working to address this by installing enough chargers in public places and expanding public charging infrastructure to drive wide-scale EV adoption. Despite many efforts, charging companies are finding it difficult to maintain growth because of political uncertainties.
The Trump administration has proposed stripping away federal incentives for EVs and instead prioritizing oil and gas policies. This creates a challenging environment for EV manufacturers and charging companies. Moreover, tariffs on essential steel and aluminum are further challenging automakers and their operations.
Despite current challenges, many believe that the EV sector is expected to grow significantly as it aligns with global sustainability goals and technological advancements. Additionally, innovations in battery technology and charging infrastructure continue to make EVs more affordable and feasible.
Methodology
To compile our list of the 12 cheap EV stocks to buy according to hedge funds, we looked for the biggest EV companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best EV stocks. To find cheap EV stocks, we narrowed down our selection by looking for stocks trading at under 20 times their forward earnings as of March 17, 2025. Next, we focused on the top 12 cheap EV stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 12 cheap EV stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A luxury electric vehicle driving in the city, its battery technology powering its progress.
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 1st on our list of the cheap EV stocks to buy according to hedge funds. While we acknowledge the potential of GM as an investment, 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.
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Disclosure: None. This article is originally published at Insider Monkey.
