13 Best Car Stocks to Buy in 2025

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3. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 68

General Motors Company (NYSE:GM) is an American multinational automotive firm that provides trucks, vehicles, and auto parts as well as software-based services and subscriptions. The business has drastically decreased the number of its shares in recent years by engaging in a lot of share buybacks. The company announced $16 billion in buybacks between 2023 and 2025, which had a significant impact on the performance of the stock. Additionally, GM started an accelerated share repurchase program to swiftly execute $2 billion of a new $6 billion share repurchase authorization. It is one of the Best Auto Stocks.

General Motors Company (NYSE:GM) reported $47.7 billion in revenue for the fourth quarter of 2024, an 11% increase over the same period the year before. However, net income plummeted by more than $5 billion, mainly due to one-off charges, including $4 billion in non-cash restructuring costs and write-downs associated with certain joint ventures in China. The firm also lost $0.5 billion as a result of stopping funding for its Cruise robotaxi venture.

Nonetheless, sales of electric vehicles increased by 50%, fueling the boom. In 2024, General Motors Company (NYSE:GM) reported a 125% increase in EV sales. As a result, the firm’s EV market share doubled during the year, and EV sales climbed continuously until 2024. The company sold 42,000 EVs in Q4, which is 10,000 more than it sold in Q3 and almost twice as many as it sold in Q2.

Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding General Motors Company (NYSE:GM) in its Q4 2024 investor letter:

“General Motors Company (NYSE:GM) reported strong Q3 earnings results and improved free cash flow guidance. We like GM for many reasons. First, we believe GM has leading market positions in its main business segments. Second, the valuation is extremely attractive. Finally, we believe it is a strong free cash flow generator, and the management team is committed to repurchasing their undervalued shares.”

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