General Motors: A Hidden Gem in the EV and AV Revolution

If you're looking for a stock that's flying under the radar despite a transformative strategy in the electric vehicle (EV) and autonomous vehicle (AV) sectors, General Motors (GM) is a no-brainer. Let's break down why this industrial titan is undervalued and how its strategic moves position it for explosive growth.

Financial Fortitude and Shareholder-Friendly Moves

GM's Q3 2024 results were a masterclass in capital discipline. Revenue hit $48.8 billion, with EBIT-adjusted at $4.1 billion, and the company raised full-year guidance to $14–15 billion in EBIT-adjusted and $10.4–11.1 billion in net income (GM Q3 2024 results). Yet, despite these numbers, GM's stock fell 6.4% in Q2 2024 due to investor fears of a growth slowdown. That's a classic case of short-term pessimism clouding long-term potential.

The numbers tell a different story. GM's trailing P/E ratio of 6.88 is a steal compared to the industry average of 10.2 and Tesla's eye-popping 55.0, according to a GM 2025 strategic review. Its Price-to-Book (P/B) ratio of 0.76 suggests the market is undervaluing its assets, while a PEG ratio of 0.7 implies growth is being priced in at a discount. A discounted cash flow analysis even pegs a fair value of ~$260 per share, versus its current ~$50 price tag-hinting at a 34% annualized return if fundamentals hold, as noted in a Q2 2025 analysis.

To sweeten the pot, GM launched a $10 billion share repurchase program in 2025, with $3.5 billion already executed, per the company's share repurchase program. Analysts project this will boost EPS by 4–6% in FY2025. Pair that with a 25% dividend hike and a $6 billion share buyback plan, and you've got a company that's returning cash to shareholders while investing in its future.

EVs: From Headwind to Growth Engine

GM's EV strategy is a work in progress, but the trajectory is clear. In Q3 2025, it delivered 66,501 EVs-a 105% year-over-year surge-capturing 15% of the U.S. EV market (see Q3 2025 deliveries). The Chevrolet Equinox EV alone sold 25,085 units, becoming the top non-Tesla EV in the U.S., as highlighted in a GM market outlook. While EVs still drag on profitability (accounting for 9.4% of total sales), GM expects variable profit positivity by Q4 2024 as battery costs fall and production scales, according to the 2024 Q2 earnings call.

Compare this to Tesla's 13.5% drop in Q2 2025 deliveries and Ford's 31.4% EV sales plunge in a recent Q2 EV sales comparison. GM's focus on mid- and upper-tier models like the Cadillac LYRIQ and the cost-competitive Equinox EV is paying off. Its a $35 billion investment in EVs and AVs, including two new U.S. battery plants, is a bet on long-term dominance.

Autonomous Vehicles: Strategic Realignment for Profitability

GM's AV strategy has evolved from moonshot to pragmatism. It recently shuttered its Cruise robotaxi project, taking a $600 million charge, but this isn't a failure-it's a pivot. By shifting focus to advanced driver-assistance systems (ADAS) and licensing autonomous tech, GM is cutting costs and aligning with customer demand, as reported when GM reshapes autonomous driving.

Its Super Cruise system, now operational on 750,000 miles of mapped roads, is a Level 2+ hands-free feature that's expanding rapidly. Meanwhile, a collaboration with NVIDIA is integrating AI into manufacturing and vehicle design, from precision welding to digital twins of assembly lines. The AV market, projected to grow to $991.7 billion by 2033 in an AV market forecast, is still a long-term play, but GM's cost-cutting and focus on ADAS position it to capitalize on near-term profitability.

Competitive Edge: Resilience in a Shifting Landscape

GM's domestic manufacturing footprint and brand equity give it an edge. It tops the 2025 "Made-in-America" index, a powerful differentiator in a protectionist climate (see the Made-in-America index). Its Ultium battery platform is key to achieving price parity with ICE vehicles, and its 9.4% EV sales mix in Q3 2025 outpaces Ford and Rivian, as the GM market outlook notes.

Yes, challenges remain: supply chain bottlenecks, consumer range anxiety, and the shadow of Tesla. But GM's 105% EV sales growth in Q3 2025 and $23.7 billion in cash reserves speak to its resilience (see the Q3 2025 earnings report). The company's ability to realign its EV production and cut AV costs by $1 billion annually shows operational agility, as previously reported.

The Bottom Line

GM is a classic value play with a growth kicker. Its undervalued metrics, shareholder-friendly policies, and strategic pivot to profitable EVs and ADAS make it a compelling bet. While Tesla dazzles with innovation and Waymo leads in robotaxis, GM's balanced approach-prioritizing profitability, capital efficiency, and long-term R&D-positions it to outperform in a maturing EV market.

For investors willing to look beyond the noise, GM is a diamond in the rough.