Putting the “Value” Back in EV: General Motors (NYSE: GM)
Image Courtesy: Craig Adderley, via Pexels.
in Our Latest PodCast: Soaring GM Reveals the EV Market’s Road Less Traveled
What happened: GM Shares jumped as the American auto giant harvested gains from favorable tariff arrangements, lucrative sales of petrol-driven trucks and SUVs, and rollbacks of pricey electric-vehicle production.
What matters: GM’s striking performance was the first tangible result of the rollback of federal tax credits for new and commercial electric vehicles that had driven record EV demand earlier this year.
What’s actionable: GM may be darklighting some EV capacity and shuttering its BrightDrop electric commercial truck, but the maker is not giving up on powering cars with batteries.
The company is set to reintroduce its uber-cheap Chevy Bolt EV in 2027.
GM committed to ”eyes off” driving and voice-command controls by 2028.
CEO Mary Barra stated this fall that her ”entire light-duty vehicle lineup” will still be all-electric by 2035.
Behind the headlines: GM is the number two EV car maker behind Tesla, according to U.S. sales reports. Its EV brands easily beat out glitzy pure-electric makers like Rivian, Lucid, and even sales of used Genesis.
GM almost never gets credit as the number two maker of electric vehicles in the U.S.
The Points of Entry: In spite of all the good earnings news – and a record jump in share price that drove larger stock indexes to a new high – GM still trades at less than 10 times the price of earnings.
Compare that to Tesla, which trades at around 250x!
On the downside, GM carries $90.3 billion of long-term debt and its capital expenditures run an order of magnitude higher than a pure EV maker like Tesla. But still, those bonds are tiered out in a massive, price-sensitive pile that seems ripe for intelligent value-oriented fixed income investor.
Dare we take the next step and declare GM actually cheap? It’s an interesting argument. And probably a lucrative one.
Created by Google Gemini 2.5 Flash Model from the prompt “General Motors Electric Vehicles Create Stocks and Bonds of Good Value”