6. General Motors Co. (NYSE:GM)
General Motors Co. (NYSE:GM) is one of the 10 best electric and autonomous driving stocks to buy according to hedge funds.
On June 9, General Motors Co. (NYSE:GM) announced a software update enabling certain U.S. electric vehicle owners to transmit power back to the electric grid. This expands the existing vehicle-to-home system, which already allows EVs to supply residential power during blackouts. Under this vehicle-to-grid model, owners can sell electricity to utility companies during periods of high demand, with General Motors taking a portion of those payments.
According to Aseem Kapur, Chief Revenue Officer of GM Energy, the company is now in talks with about ten utilities. He stated that the technology’s commercial rollout, which would initially focus on Texas and California, is expected to start in the coming months.
In Michigan, a different localized pilot initiative with DTE Energy is also in progress. Although utilities are still wary of the necessary infrastructure investments and technological uncertainties, the initiative highlights a larger industry trend of automakers like Ford Motor Co. following Tesla’s lead in the energy sector.
Earlier on June 1, Michael Ward from Citi reiterated a Buy rating on General Motors Co. (NYSE:GM), while significantly increasing the price target from $108 to $131. Ward raised the price targets for both automakers, i.e., General Motors and Ford, to reflect their prospects.
Although Ward currently prefers General Motors over Ford, he feels that both companies are well-positioned to capitalize on increased industry production. Additionally, he highlighted that adjacent revenue streams originating from energy storage, autonomous technologies, robotics, and digital services offer avenues for growth and margin expansion compared to the traditional automotive business.
General Motors Co. (NYSE:GM) builds and sells crossovers, cars, trucks, and automobile parts worldwide. It also offers after-sales services, subscriptions, automotive financing, and software-enabled services. It sells its products through retailers, distributors, and dealers, as well as to fleet customers. The company markets its vehicles under brand names including GMC, Baojun, and Buick.
While we acknowledge the potential of GM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GM and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Electric and Autonomous Driving Stocks to Buy According to Hedge Funds.
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