General Motors: The EV Stock to Watch in 2024?

General Motors (GM) has emerged as a strong contender in the electric vehicle (EV) market, with a diverse portfolio and strategic partnerships driving its growth. As the EV market continues to expand, investors are wondering if GM is the best EV stock to buy right now. This article explores the factors contributing to GM's EV success and evaluates its potential as an investment opportunity.

GM's diverse EV portfolio is a key driver of its market share growth. With models like the Chevrolet Equinox EV, Cadillac LYRIQ, and GMC HUMMER EV, GM caters to a wide range of customer preferences. This strategy has enabled GM to capture a significant share of the EV market, with sales reaching 32,095 units in the third quarter of 2024, a 60% increase year-over-year.

Strategic partnerships and collaborations have also played a crucial role in GM's EV success. The company has formed alliances with other automakers, charging companies, and travel center operators to enhance charging infrastructure and convenience. These partnerships have helped GM address one of the primary concerns of EV adopters: range anxiety.

GM's approach to addressing range anxiety is paying off. Most of its EVs now boast a range of over 300 miles, with the new Silverado EV RST capable of nearly 500 miles on a full charge. This focus on range and convenience has contributed to GM's growing EV market share, which reached 9.5% in the third quarter of 2024.

GM's EV profitability timeline is another factor to consider when evaluating its investment potential. The company is nearing the crossover point to profitability for EV sales, with improving economics as volumes increase. GM's EV profitability is benefiting from declining battery cell costs, thanks to the quality, efficiency, and scale of its joint venture cell plants. Additionally, GM has been aggressive in reducing fixed costs, which have come down by $2 billion over the last two years net of depreciation and amortization.

GM's battery cell costs and production scale compare favorably to other automakers. The company's joint venture with LG Chem and Samsung SDI is expected to produce 3.5 million battery cells annually by 2025. This scale, combined with GM's diverse EV portfolio and strategic partnerships, positions the company well to achieve EV profitability.

Key factors driving GM's EV market share growth include its diverse portfolio, strategic partnerships, and focus on addressing range anxiety. These factors, along with GM's EV profitability timeline and competitive battery cell costs, make it an attractive investment opportunity in the EV space.

In conclusion, General Motors' strong performance in the EV market, driven by its diverse portfolio, strategic partnerships, and focus on range anxiety, positions it as a compelling investment opportunity. As the EV market continues to grow, GM's commitment to innovation and manufacturing expertise is making the company a strong contender in the EV space. Investors should consider GM as a top EV stock to watch in 2024.