Should I Buy General Motors (GM)? Finance YouTuber Analysis

The analyst notes GM's shares are up significantly since late 2023 and the stock is still relatively cheap at a 6x forward P/E. However, he is watching for potential red flags in the upcoming earnings report, specifically if revenue continues to fall or if there is margin pressure, which would indicate weakening consumer confidence and spending.

“If we do see revenue continue to fall for General Motors and you see any sort of margin pressure, whether it's gross margin, that's going to be the biggest thing I'm going to watch or also their operating margin, it's going to be a little bit of a red red flag for the economy.”

The YouTuber highlights GM's strong operational performance, including growing sales, improving margins, and significant cash flow generation used for debt reduction, dividends, and share buybacks. He notes the company's leadership in full-size trucks and SUVs, its growing OnStar and Super Cruise deferred revenue, and its advantageous position regarding regulatory credits. While he personally sold his portfolio position, he still owns shares and views it as a well-performing company.

“The lesson here, I think, for investors is not necessarily that GM is going to be a dominant stock in the future. It's that buying a company that's unloved by the market at four, five, six times earnings was a phenomenal buy in 2023, in 2024.”

The YouTuber believes General Motors is making the right strategic calls by backing away from an all-electric future and focusing on ICE and hybrid vehicles, where demand remains strong. He highlights GM's growing revenue and potential for improved margins in 2026 due to changes in regulatory credits, suggesting the company is taking market share from EV pure-plays.

“Ford and GM heading in the right direction.”

Travis Hoium argues that General Motors is an extremely cheap stock, trading at only 5-6 times its expected cash flow from the auto business. He highlights GM's dominance in high-margin trucks and SUVs, strong inventory management, and improved guidance for EBIT and free cash flow. He believes the company is well-positioned to thrive even in a downturn and benefit from a potential decline in EV sales.

“So, I love everything that we're seeing from GM today. We will get a report from Tesla later this week, but expect GM to really be the highlight because this is a company that's taking shares in internal combustion engine vehicles and as we see likely a decline in EV sales over not only the fourth quarter of this year, but also into 2026. That could mean even better news for GM.”

Travis Hoium recommends buying General Motors stock, citing its aggressive share buyback program (20% annualized) at a low valuation of five to six times earnings. He highlights GM's strong operating performance, including growing revenue, consistent free cash flow, a healthy automotive balance sheet, and increasing market share in both traditional trucks/SUVs and EVs. He believes these factors will drive long-term share price appreciation despite potential short-term headwinds like tariffs.

“If they're taking market share and the stock is trading for five, six times earnings and management is buying back 20% of shares outstanding on an annualized basis, that's how you get phenomenal gains for long-term investors.”

The analyst sold GM late last year and continues to avoid it due to significant short-term headwinds, primarily a $4-5 billion impact from tariffs and uncertainty regarding consumer spending in a potentially weakening economy. While acknowledging GM is a well-run company with a good balance sheet and popular vehicles, these external factors create too much risk for the near future.

“This is a stock that I sold late last year when they got out of the cruise business. Just didn't fit in the asymmetric portfolio, but I do still think it's a good long-term value and it's a very well-run company in 2025, but potentially a lot of headwinds ahead.”

The YouTuber recommends General Motors, highlighting its low price-to-free-cash-flow ratio of 4-5x, driven by strong sales of high-margin trucks and SUVs. He emphasizes the company's aggressive share buyback program (20% of shares outstanding) and solid balance sheet, which provides resilience during market pullbacks. He also sees long-term potential in EVs and autonomy.

“I think GM is a much better and more stable business than a lot of people think.”

The analyst recommends buying General Motors due to its extremely low valuation of just over four times forward price-to-earnings, strong free cash flow generation, and a significant share buyback program. He highlights the company's market share gains in 2024, growth in high-margin trucks and SUVs, and a net cash position in its automotive business, which he believes is often misunderstood by investors. Despite macroeconomic risks, GM's operational strength and financial health make it a compelling investment.

“I think makes this a phenomenal buy for investors at this price you're not going to see a lot of stocks you're not going to see a lot of stocks with they for price to earnings multiple but that's what you get from GM today”

Travis Hoium argues that General Motors (GM) is an incredibly cheap value stock despite its recent 9% drop. He highlights strong Q4 2024 results, positive 2025 guidance, increasing market share in key segments (including EVs), improving margins, and significant free cash flow generation. The low price-to-earnings multiple (under 5) and aggressive share buybacks are key drivers for future share price appreciation, making it a good buying opportunity.

“I think this is actually a pretty good buying opportunity given the value and given how well GM is performing today.”

The YouTuber sold all shares of GM because the company's decision to shut down its Cruise division fundamentally changes the investment thesis. He believes GM is no longer a visionary company with asymmetric potential in autonomous driving, but rather a traditional automaker focused on capital efficiency, which he views as a red flag for disruptive innovation.

“I sold all of my shares of GM stock I have gotten completely out because this completely changes the thesis in the company.”

The analyst is invested in General Motors, citing its 80% ownership of Cruise, which he views as pure upside for investors. He argues that GM is an auto business generating cash flow, trading at a low price-to-earnings multiple (5-6x), and investors essentially get the Cruise business for free, unlike more expensive companies like Tesla with unproven technology.

“the one company that I'm invested in that I think has huge upside is actually General Motors they are about an 80% owner of cruise the cruise business is basically pure upside for investors so you're not paying for a very expensive company like Tesla that doesn't have proven technology you're paying for an auto business this is generating cash flow you're only paying about five or six times earnings and you get Cruise for free”

Hoium recommends General Motors as a buy, noting its strong position in high-margin trucks and large SUVs, particularly in the US Midwest, which generates significant cash flow. He believes GM is better structured for the transition to electric vehicles due to its focus on platform standardization, modular design, and a more streamlined brand portfolio (four brands), making it more efficient than competitors like Stellantis.

“I think the way that they're building the business even for this EV future and this software enabled future makes much more sense and part of it is that they only have four brands that they have to deal with.”

Travis Hoium argues that GM's sale of its stake in a battery plant is a strategic move to increase flexibility and potentially lower costs, rather than a pullback from EVs. He believes this allows GM to focus on its core strengths and leverage specialized battery manufacturers, ultimately benefiting the company by simplifying its supply chain and potentially leading to stock buybacks.

“I think this is really a move that's going to give them more flexibility could potentially lower their costs in the future and GM did announce a joint venture earlier this year with Samsung SDI that's going to be to build Prismatic cells in Indiana so a similar structure that to what they had with LG but on the Prismatic side so you can see that GM is kind of trying to play everybody in the market get the lowest costs while having as much Supply as they possibly can so from a business model perspective this makes a lot of sense for GM could actually be a win for LG as well because they are going to be able to sell to other customers”

The YouTuber maintains a strong buy on General Motors, citing its undervalued status despite a significant run-up, low P/E multiple due to share buybacks, and strong cash flow from profitable truck and SUV sales. The optionality and 10x potential come from its Cruise autonomous driving unit, which is expected to scale rapidly and could be worth more than GM itself in the future.

“I think Cruz could be worth many multiples more than General Motors is today a decade from now and that upside will largely go to GM shareholders because GM owns about 80% of crws right now.”

Travis Hoium argues that General Motors' entry into Formula 1 with Cadillac as a 'Works team' is a significant positive for the company. He believes it will serve as a powerful marketing and technology tool, increasing exposure for Cadillac's EV lineup, particularly on the coasts where GM's market share is lower. The investment is seen as a strategic capital allocation given GM's strong free cash flow, providing a competitive advantage over rivals like Ford and Stellantis.

“if you're a GM investor I think this is just more Tailwinds behind you as a company separates you a little bit from your other competitors like Ford like stellantis and all of their brands you're kind of moving to the top of the Heap there and bringing Cadillac to the Forefront in racing”

The YouTuber highlights General Motors as a value play with significant optionality, trading at only six times earnings despite a 95% increase in the past year. The optionality comes from its Cruise autonomous driving unit, which is a leader in the space and is set to re-launch with custom-made, potentially lower-cost vehicles in 2025, leveraging GM's manufacturing and distribution capabilities.

“you're not paying for cruise if you're buying shares at General Motors you're paying for the company that makes most of its money on trucks and SUVs and shares even today even after that 95% increase are only trading for six times earnings.”

The analyst recommends buying GM stock due to its strong financial performance, including significant revenue growth and increased guidance. He highlights the company's low valuation at five times earnings, aggressive share buybacks reducing share count by 19% in the past year, and dominant market share in profitable full-size trucks and SUVs. Additionally, GM's EV segment is showing progress towards profitability, and the Super Cruise technology offers future optionality.

“I think this is one of the best positioned stocks in the market today it's why it's one of the biggest Holdings that I have in the asymmetric portfolio.”

The YouTuber suggests that General Motors, through its Cruise subsidiary, represents a lower-risk, higher-reward opportunity in autonomous driving. He highlights their strategy of using proven hardware (sensors) on cost-efficient vehicles like the Chevy Bolt, with the expectation that hardware costs will continue to decrease, leading to scalable and regulatory-approved autonomous solutions.

“as an investor I think the lowest risk highest reward opportunity in this market is those companies that approved the technology and now it's going to be a matter of making their Hardware more efficient and just scaling that over and over again around the world”

The YouTuber discusses Cruise, a GM-owned company, as another significant player in the robotaxi market. Despite past setbacks, Cruise is re-mapping its vehicles and plans to integrate its technology into the next-generation Chevy Bolt, aiming for a cost-effective hardware solution and significant fleet expansion by 2026.

“Cruise is the other company that is in a fairly similar position to Waymo except for their vehicles are just now mapping again.”

The analyst recommends buying General Motors due to its strong performance in the EV market, taking market share in the US, and its robust free cash flow generation. He highlights the company's ability to maintain margins in its profitable truck and SUV segments, its low valuation (5x P/E), and its aggressive share buyback program, which provides a significant margin of safety compared to competitors like Tesla.

“GM is my top Auto stock today because you have so much leeway for the company to adjust through the natural es and flows of the auto market and management can take advantage of that cash that they have and the cash that they're generating to buyback shares so gives a lot of upside.”

The analyst implies a negative outlook for Cruise (owned by General Motors) compared to Uber's strategy, noting that Cruise's business model involves building its own ride-sharing service and scaling in individual cities through its own app. This approach is contrasted with Waymo's strategy of leveraging Uber's platform, suggesting that Cruise's path might be more challenging as it attempts to compete directly with Uber for customer relationships rather than integrating into an established marketplace.

“They are going to want to build that ride sharing service they are going to want to scale in individual cities that is the strategy that Mary bar and GM have laid out.”

The analyst recommends General Motors due to its strong free cash flow generation and significant share buybacks, which are reducing shares outstanding by about 20% annually. He notes the company operates in a less competitive market (trucks and SUVs) compared to EVs, and its valuation is attractive at 5.2 times trailing earnings. The optionality of Cruise is also seen as a bonus.

“Shares are trading for a very reasonable able valuation as I'm recording right now the stock is trading for just 5.2 times trailing earnings and look at this free cash flow chart and the amount of share BuyBacks the company is doing.”

The YouTuber is invested in General Motors due to the significant upside potential from its ownership of Cruise, a leading autonomous vehicle company. He notes that GM stock is currently trading at a low valuation of five times earnings, making it an attractive investment with the added benefit of its AV subsidiary.

“I'm really invested in General Motors because I think Cruz again the upside the price is just too attractive right now.”

The analyst suggests General Motors is a better investment for exposure to the robotaxi market through its subsidiary Cruise. GM trades at a low valuation (around five times earnings), implying investors get the Cruise robotaxi business 'for free' as an upside potential, while Cruise is actively deploying and scaling its services.

“I think if you're interested in autonomous driving two companies to watch is actually General Motors trading about five times earnings you basically get Cru for free.”

The analyst argues that GM is a 'phenomenally cheap company' because its automotive business is net cash positive, despite the large debt figures often cited for the consolidated entity. He explains that the majority of the debt belongs to GM Financial, which operates like a bank and should be analyzed differently. The core auto business is generating significant free cash flow and aggressively buying back stock, making it an attractive investment.

“don't let that dissuade do from a company like this because it's really the auto business that you want to analyze because that's the core of GM and GM stock that's where most of the cash flow come comes from”

The analyst remains bullish on GM because the company has refocused on its profitable internal combustion engine (ICE) truck and SUV market, which is described as a 'cash flow machine.' Unlike Ford, GM is also aggressively buying back shares, which is seen as a long-term boost for the stock.

“I remain bullish on GM because they have focused on that cash flow machine the other thing that came up on the conference call is that management is not being really aggressive buying back stocks shares trade for about five times forward earnings that's analyst estimates over the next year that would be a great time to buyback stock if you have the cash and you think that you're going to and you think your stock is undervalued but Ford is not doing that GM on the other hand buying back about 20% of its shares outstanding on an annualized basis so they're being very aggressive with BuyBacks that's going to at least longterm give a boost to the stock.”

Travis Hoium argues that General Motors is a strong buy due to its aggressive share repurchase program, which has significantly reduced outstanding shares. He highlights the company's strong free cash flow generation, dominant position in profitable truck and SUV markets, and a healthy balance sheet with low automotive debt, allowing it to continue returning capital to shareholders at a low valuation of around five times earnings.

“I think this is ultimately one of the biggest bullish signs for General Motors and then when you think about the stability of the business they have actually been raising prices throughout 2024.”

The YouTuber discusses GM's recent earnings report, noting the stock was down despite strong results due to a $600 million write-down related to the Cruise Origin vehicle and changes in their China strategy. He argues that the market's negative reaction is an oversimplification, as the Cruise strategy shift to using the Chevy Bolt reduces regulatory risk and unit costs, making it a more pragmatic approach for scaling autonomous driving. He implies that the market is overlooking these positive strategic adjustments.

“GM announced phenomenal earnings today it's Tuesday so they announced them this morning and yet the stock is down 6% so it's a little bit strange what the reaction is”

The analyst suggests General Motors is a more attractive investment compared to Tesla. He highlights that GM has better margins and free cash flow, and a significantly lower price-to-sales multiple (0.3) than Tesla (nearly 8), indicating a more reasonable valuation for a profitable automaker.

“I think some of these other Legacy automakers are much more attractive from a from an investment perspective.”

The YouTuber believes GM is a strong buy despite a post-earnings drop, citing phenomenal quarterly results, increased guidance, and aggressive share buybacks at a low P/E multiple of around 5x. He highlights GM's pricing power in trucks/SUVs and a prudent, profitable approach to EVs, contrasting with competitors losing money. The company's commitment to buying back stock when the price is low is seen as highly accretive.

“as a shareholder and a long-term shareholder I don't see any reason to sell shares and this may be a stock that I would add over the next couple of months”

Travis Hoium argues that General Motors' decision to scale back its EV production targets is a strategic win for investors. He highlights GM's strong free cash flow generation from its traditional ICE vehicle business, especially trucks and SUVs, contrasting it with the unprofitable and highly competitive EV market. The company's low P/E and P/S multiples compared to EV pure-plays suggest it is undervalued, especially given its focus on profitable segments and ability to adapt to market demand.

“I have a hard time seeing this as not the absolute correct move for General Motors from an investment perspective if you look at the company's free cash flow and what the competition looks like what demand looks like for things like trucks and SUVs that business is doing extremely well continues to turn out cash year after year.”

The YouTuber suggests buying General Motors as an investment in the autonomous driving space, specifically highlighting its ownership of Cruise. He believes that investing in GM provides exposure to Cruise's promising business model of building out its own fleet of custom autonomous vehicles, which he sees as a more effective strategy than Tesla's approach.

“The upside is buying General Motors and getting Cruise for free.”

The analyst recommends General Motors due to its subsidiary Cruise, which is developing a transportation-as-a-service model for autonomous vehicles. Despite a recent setback, GM's willingness to make large capital investments and the potential for a 'winner-take-all' market in autonomous ride-sharing make it an attractive long-term bet, with a potential market value exceeding a trillion dollars.

“If Cruise ends up winning, we're talking about a market that could potentially be worth a trillion dollars plus and this is one of only a couple of companies that are actually doing this.”

The YouTuber suggests buying General Motors, highlighting its extremely low trailing P/E of 5.8 and forward P/E of 4.9. He emphasizes the company's strong free cash flow generation, significant share buyback program (including a recent accelerated repurchase), and stable business model focused on trucks and SUVs, while also making progress in EVs.

“GM is going to use a bunch of their cash to buy back shares at a price to earnings multiple ranging between four and six that is just a really really attractive price to be buying back a stock.”

The YouTuber strongly favors General Motors, citing its recent $6 billion and $10 billion buyback programs, which have reduced shares outstanding by 16% in two quarters. They believe GM's core business is a cash flow machine, and buying back shares at a 4-5 times P/E multiple is highly advantageous, especially given their contrarian view that GM will not be as disrupted by EVs as many expect.

“I love GM's position and the BuyBacks are a huge reason why shares outstanding have dropped like a rock over the last few years and that will continue as long as the stock stays where it is”

Travis Hoium recommends buying General Motors stock, citing its current low valuation of 4-5 times earnings and consistent free cash flow generation. He believes the significant upside potential comes from its autonomous driving subsidiary, Cruise, which he projects could generate substantial revenue and operating profit in the future, a value not currently reflected in GM's stock price. He argues that GM offers a better investment opportunity than Tesla due to its valuation and Cruise's business model.

“I think this could easily 10x maybe even more than that over the next decade.”

The YouTuber argues that GM is a strong buy due to its robust financial performance, including strong free cash flow and high operating margins, even after recent UAW agreements. The company's strategic moves in EVs, particularly low-cost models, and the continued strength of its ICE truck and SUV business, along with a strong balance sheet and share buybacks, position it for significant upside. The recent labor peace further de-risks the investment.

“I think there's tremendous upside because the ice business isn't going anywhere the truck and suv business for internal combustions isn't going anywhere and we're starting to see a little bit more evidence that GM is going to do relatively well in electric vehicles as as well so I think things are pointing in the right direction for GM”

The analyst argues that GM is a strong buy due to its low valuation (P/S of 0.3, P/E of 5.6) compared to Tesla, and its consistent generation of billions in free cash flow. He believes GM's focus on profitable trucks and SUVs, coupled with its growing investment in EVs and autonomous driving through Cruise, positions it for continued outperformance as competition leaves the ICE market and the auto industry normalizes.

“General Motors very very cheap a lot of people still think this company's in trouble but it's generating billions and billions of cash every every single year.”

The analyst recommends General Motors, noting its significant outperformance against Tesla and its strong free cash flow generation (nearly $10 billion annually). GM is aggressively buying back stock, and the Cruise autonomous driving unit, despite past challenges, offers substantial asymmetric upside as it expands commercial operations. The stock is deeply undervalued, trading at a forward P/E of 4.8.

“when you're getting that kind of value and that kind of upside with the stock like with a business like Cruz that is why this is one of my top stocks for the month and one of the ones that I have been adding over the past year”

The analyst is bullish on General Motors, citing its extremely low valuation of 4.5 times management's updated 2024 earnings guidance. He points to aggressive stock buybacks, investments in EVs, and strong performance in profitable truck and SUV markets. The autonomous driving subsidiary, Cruise, offers pure upside, making GM a value play with growth potential.

“I love the potential for General Motors by the way outperformed a competitor like Tesla by a very wide margin so far in 2024”

The analyst views General Motors as a strong buy due to its low valuation (4.5-5x earnings) despite strong Q1 earnings, raised 2024 guidance, and aggressive share buybacks. The company is showing surprising growth in ICE vehicle sales, momentum in EVs, and a strong balance sheet with net cash in its auto business. While acknowledging risks in the auto industry, the current demand and valuation make it an attractive investment.

“Shares are really trading for four to five times earnings, $45 per share if they do get to $10 per share in earnings, that's a PE ratio of 4 and a half so just still it's it's still just a crazy valuation despite the fact that the business is doing so well.”

The YouTuber owns GM stock because it is a consistent cash flow machine trading at a low price-to-earnings multiple (5-6x earnings), allowing for significant share buybacks. He is looking for continued positive free cash flow and a clear vision for the Cruise autonomous driving unit, which he sees as the asymmetric upside potential for an otherwise value stock.

“I own the stock if you can buy a company that's generating cash flow year after year after year and just buys back those shares at five six times earnings that's a phenomenal way to generate a return as an investor.”

Travis Hoium believes General Motors is making a significant move into the electric vehicle space with the new Chevrolet Silverado EV. He argues that the Silverado EV's superior range (440 miles) and larger size make it a compelling option compared to competitors like the Ford F-150 Lightning and Rivian R1T, especially for work truck applications. He suggests that trucks and larger SUVs will be the real drivers for GM's EV market penetration going forward.

“I think this was a pretty compelling vehicle especially when you compare it to what's already on the market particularly the F-150 Lightning and the r1t from rivan so interesting announcement from GM and I'm excited to see what sort of vehicles they're going to come out with at a little bit lower price point from trucks cuz I think ultimately if they're going to move into the electric vehicle Market it's going to be trucks and larger SUVs that are going to be the real driver for General Motors going forward”

Travis Hoium argues that GM is a strong value and shareholder return story. The company consistently generates significant free cash flow, which it is using for aggressive share buybacks, potentially reducing shares outstanding by 15-25% annually. This strategy, combined with a low market cap relative to earnings, makes it an attractive investment compared to Tesla.

“GM isn't a growth story but it is a value in a shareholder return story so the companies just going to continue to generate cash building trucks and SUVs that people want to buy ice vehicles in particular they've delayed a lot of their move to electric vehicles they've reduced spending at Cruise and that's going to leave more and more cash to do this massive buyback program”

General Motors is highlighted as a strong value due to its consistent free cash flow generation from internal combustion engine vehicles, which face less competition than EVs. The company is aggressively buying back shares, leading to a very low valuation (price to free cash flow of 4.6, price to earnings of 5.4). The analyst draws an analogy to the cigarette business in the late 90s, suggesting strong returns for investors buying into a perceived 'dying' industry that still generates significant cash.

“a $40 billion company with $22 billion worth of cash on the balance sheet trading for a price to free cash flow of 4.6 price to earnings multiple right now is 5.4 a lot of investors think that General Motors and on these Legacy automakers are in trouble but I think the reality is the demand for legacy Vehicles especially trucks and SUVs which is really where General Motors specializes continues to be really strong.”

Hoium suggests General Motors as a buy, noting its strong cash generation from a stable legacy business focused on trucks and SUVs, where competition is lower due to EV shifts. He points to its low valuation (around five times earnings) and aggressive share buybacks. The Cruise autonomous driving business is considered free upside, despite recent challenges.

“investors are getting GM for around five times earnings the company's buying back stock at a really rapid rate and still the ultimate upside that basically comes for free with the company is crw their electric vehicle their autonomous driving business.”

The analyst argues that GM should acquire Rivian, stating that GM is generating significant cash flow and has a strong balance sheet, making it capable of funding the acquisition. This move would provide GM with established EV technology and a desirable brand, while also solving Rivian's financial difficulties and cash burn issues. The acquisition would create substantial synergies in manufacturing, engineering, and sales infrastructure.

“I think the time is now for GM to acquire rivan actually it's rivan who needs to sell itself to somebody and I think GM is the natural partner.”

The analyst is bullish on General Motors due to its aggressive share buyback program, which significantly reduces shares outstanding and boosts earnings per share. He highlights the company's low valuation, with a P/E of just over 5 and a P/FCF of 4.6, indicating a high free cash flow yield. Management's commitment to maintaining a cash balance of $18-20 billion while generating substantial free cash flow suggests continued significant buybacks, potentially reducing shares by another 25% in 2024.

“I'm bullish about this company Long Term is not because I think they're going to grow as much as a competitor like Tesla it's because I think the margins for all of these auto companies eventually converge over time and what ultimately matters is how much free cash flow are you making and what are you paying for that free cash flow.”

The analyst argues that General Motors is an incredibly cheap stock, trading at low earnings and free cash flow multiples (P/E of 5.3, P/FCF of 4.5). He highlights the company's consistent generation of nearly $10 billion in annual free cash flow, which is being aggressively returned to shareholders through significant share buybacks. Despite perceptions, GM's financial structure is robust, and its focus on profitable trucks and SUVs, alongside strategic investments in EVs and the potential upside from Cruise, makes it an attractive long-term investment.

“If you're just looking for a cheap stock to buy and hold long-term, I think GM is a great place to start.”

The analyst recommends buying General Motors, citing strong financial performance with $10.1 billion in net income and $20.8 billion in automotive operating cash flow for 2023, exceeding guidance. He highlights the company's aggressive share buyback program, which could significantly reduce share count, and its dominant position in profitable truck and SUV sales. While acknowledging EV investments, the core thesis rests on the robust cash flow from ICE vehicles and the potential upside from the Cruise autonomous driving unit.

“I like where GM is sitting I think the value is just phenomenal I don't think the ice vehicle business is going anywhere I think it's going to continue to be a cash cow for much longer than the market thinks.”

The analyst argues that General Motors is the best auto stock to buy due to its consistent and increasing free cash flow, strong margins on trucks and SUVs, and significant stock buybacks. He believes GM is well-positioned to generate cash for shareholders while the EV transition takes longer than anticipated, contrasting it with Tesla's declining margins and high valuation.

“General Motors is performing extremely well they make phenomenal margins on trucks and SUVs and now they're starting to buyback stock another interesting one is stellantis I think we've seen more discounting from them recently so I'm really interested to see where margins and free cash flow goes in the second half of the year and then into 2024 and then Ford I think is kind of the lagered of these three just not the same from an operating perspective the brand doesn't seem to be as strong as General Motors or some of the sanest brands like Jeep but again we do have positive free cash flow from Ford so just looking at those Trends I think you could take this a number of different ways if you are an electric vehicle investor you could say yep Tesla is still very profitable they're making strong free cash flow and this is the future of the industry so why wouldn't you want to own that stock I'm going to get to that in the second half but I think the troubling things for Tesla is they continue to increase Supply and they're having to lower prices and this is at the same time as more competition is coming into the market so I don't see any way in the future they're not going to have to continue competing on price that means lower margins both from a gross perspective and an operating perspective and worse free cash flow on top of that the multiple the price to earnings multiple price to sales multiple however you want to look at it for Tesla is about 10 times higher than it is for some of these Legacy automakers so yes electric vehicles may be the future but investors are paying an insane premium to get to that future and that's I think fundamentally going to be the biggest downfall for Tesla is it is just priced to Perfection and this is in no way a company that has been operating to Perfection for the last 12 to 18 months thanks to our friends at the monly fool for sponsoring this video visit fool.com ym for the top 10 stocks to buy right now I'll pull up some of these multiples here but this really shows exactly how expensive specifically Tesla is if you can look at the price to earnings multiple these other companies almost don't show up on this chart but I'll give you the numbers right now Ford's price to earnings multiple 7.2 GM's multiple 4.9 that's before buying back 15 to 20% of their stock which they did at the end of the fourth quarter so we'll see that adjustment when they do their next quarterly report and then stance is 3.1 Tesla's price to earnings multiple right now is 68 price to sales multiple you get the same story Tesla has a price to sales multiple that's more like a tech company about seven and the other companies are hovering right around three so the question investors have to ask themselves is what does the future of the Auto industry look like and where do I want to put money based on these valuations because I think these two things interacting is really what's important and right now I think what we're seeing is more investment is going in the electric vehicle space but more and more companies are losing money there's this supply and demand imbalance that means that for the foreseeable future there's going to be basically a price War that's going to cause a number of companies to likely go bankrupt have to go through some sort of restructuring maybe even get acquired by one of their competitors the analogy that I have here is the solar industry the solar industry went through this between 2010 in 2015 ton of growth in the industry overall but there was simply too much Supply so companies started to have to compete on price when you're a manufacturing business you have to keep churning out profit to keep that capital investment that you've made over the years work for you so the only option for a lot of these companies was just to lower their prices and they lowered them so far that eventually they weren't able to invest in the next development the next product and they fell behind and eventually started losing so much money that they weren't sustainable anymore I think that's ultimately going to happen to a lot of these companies the model 3 even the model y looks effectively the same as a as a vehicle that's almost 10 years old the original model S so there's a lot of challenges here for Tesla and so there's a lot of challenges here for the electric vehicle industry in general and Tesla specifically you could add in the fact that FSD is not performing in any way the way that Elon musos and Tesla has been promising for over seven years now they're saying that people would be able to drive themselves around and say that Teslas are going to be appreciating asset instead of a depreciating asset that's absolutely not going to be the case the robo taxi doesn't seem to be anywhere near reality and artificial intelligence even seems to be something that's more promises than there is execution so what are investors paying a premium for they're paying a premium for an automaker that's having to compete more based on price and is potentially in a segment of the market that's going to be over supplied for many many years to come then you look at some of the Legacy automakers General Motors Ford stellantis nobody's coming in with a new internal com combustion engine truck or a new SUV that fits seven or eight passengers but that's where all of the money is being made that's where the profits are for these companies and I don't see that ending anytime soon this maybe my view of the world I live in the midwest I do not live in California where electric vehicles are somewhere around half of the sales of new vehicles electric vehicles here are under 5% of new vehicles sold and guess what that's the case in most of the US and most of the world today if you see everyone driving an electric vehicle then that's an outlier that is not the reality for most of the market and these places that have not gone all in on electric vehicles yet I think are going to take much much longer to get there than a lot of people think it's not going to be 2030 it's going to be more like 2040 or 2050 yes decades in the future before most people are driving electric vehicles it is going to take that long to change the infrastructure change habits get the price points down and that means that in the meantime General Motors Ford and stantis are going to be churning out cash that they can return to shareholders with dividends BuyBacks GM is the one that I think is the St is the top stock here they announced a massive buyback late in 2023 going to buy back about 20% of their stock and if this cash flow continues they could do that almost on a yearly basis so given the valuation given the trends in the market given those margin Trends I think where investors want to be right now is in companies like General Motors and stellantis not in stocks like Tesla which have a long way to fall if they don't execute absolutely flawlessly now what do you think do you just agree leave your comments in the comment section below don't forget to subscribe to This creator thanks for watching everybody see you here next time”

The analyst suggests buying General Motors, arguing that the market undervalues its profitability from traditional ICE vehicles, especially trucks and SUVs. He highlights the company's aggressive stock buyback program and the optionality provided by its Cruise autonomous vehicle business, which is essentially acquired for free at the current valuation.

“I think GM continues to sell a ton of trucks and SUVs continue to buy back stock and in 2024 the market is going to realize that maybe ice vehicles are actually going to be more profitable than electric vehicles even for the market leaders”

The analyst recommends buying General Motors due to its aggressive $10 billion share buyback program, which will retire a significant portion of outstanding shares, and its reinstated 2023 guidance showing strong free cash flow. He argues that GM's focus on profitable ICE trucks and SUVs, combined with its low valuation of 4-5 times earnings, makes it an attractive long-term investment despite the EV transition challenges faced by competitors.

“I think GM is the kind of company that can keep cash flow growing, keep margins very high, and that's why this is going to be a great stock long term.”

The YouTuber maintains a 'hold' stance on General Motors, acknowledging that the departure of Cruise CEO Kyle Vogt significantly impacts a key part of his investment thesis for GM. While the short-term market reaction was positive due to reduced cash burn, the long-term potential of Cruise as a $50 billion revenue opportunity was a major driver for GM's valuation. The current uncertainty around Cruise's future operations and leadership makes it difficult to make a definitive buy or sell decision.

“I'm not making any rash decisions about buying or selling stock right now but definitely worth being aware of what is going on”

General Motors is a phenomenal value with a sub-4 price-to-earnings multiple. While EV demand is softening, GM's core truck and SUV business (internal combustion engine) continues to generate strong cash flow due to limited competition and high margins. The recent tentative agreement with the UAW removes a significant overhang, and the company's share buybacks further add value.

“General Motors is a phenomenal value right now the price to earnings multiple is under four just a phenomenal value if they can continue churning out cash and I think that is going to be the case”

The analyst is bullish on General Motors primarily due to its Cruise autonomous driving business, which he believes could become a trillion-dollar company. He sees GM's core automotive business as a cash generator funding Cruise's expansion and stock buybacks, positioning Cruise as the main long-term value driver.

“I think that could ultimately be a trillion dollar company just Cruise itself and GM owns about 80 percent of that business so the core automaking business is profitable it's churning out cash but what are they doing with that cash they're investing it in both buying back stock reducing the shares outstanding and investing in cruise I think cruises ultimately where the value is going to be for General Motors”

The analyst argues that General Motors is an attractive investment due to its ownership of Cruise, an autonomous driving company. He projects Cruise could generate hundreds of billions in revenue by 2033, significantly exceeding GM's current market cap, and believes this potential is not reflected in GM's current stock price, which trades at a mid-single-digit P/E multiple. Cruise's rapid expansion into new cities is cited as a key growth driver.

“This is what I think is currently getting lost for a lot of investors is that this is an insanely valuable asset and it's getting almost no value in the stock price.”

The YouTuber recommends General Motors, highlighting its strong and increasing cash from operations over the past year. This is attributed to robust demand for traditional vehicles, particularly trucks and SUVs, and price increases in Q2, which have led to significant cash flow for the company as chip shortages are now behind them.

“GM is the Blue Line Ford is the Orange Line both of them increasing cash from operations over the past year that's because demand for traditional Vehicles remains really strong particularly trucks and SUVs continue to be in very high demand.”

The analyst is very bullish on General Motors, citing its current trading multiple of under five times earnings despite strong operational performance and increased guidance. He highlights robust margins, strong pricing, and efficient capital expenditure management as key drivers. The company is generating significant free cash flow and management is executing well, making it a phenomenal stock to own.

“I think General Motors is a company that is performing extremely well they're obviously risks in the auto business and that has always been the case but for investors you're getting a great company at a price to earnings multiple under five management seems to be executing extremely well and I don't see anything disrupting The Core Business and the core cash flow from trucks and SUVs at General Motors right now so I think this is a phenomenal stock it's one that I own it's one that I look to add in the near future.”

The analyst recommends buying GM due to its ownership of Cruise, which he identifies as a clear leader in autonomous driving technology. He highlights Cruise's rapid accumulation of driverless miles, superior safety record compared to competitors, and its significant lead in fully driverless operations. He also notes that GM's current valuation at six times earnings does not fully reflect Cruise's potential, which is projected to generate $50 billion in revenue by 2030.

“I think if you're interested in autonomous vehicles if you think Robo taxis are the future this is absolutely the best way to invest in it”

The analyst recommends General Motors, citing its reasonable valuation with strong earnings per share guidance and significant free cash flow. The primary upside driver is identified as its 80% ownership stake in Cruise, the autonomous driving business, which management projects to be a $50 billion business by 2030, offering substantial long-term growth potential.

“I think this is ultimately the biggest asset that General General Motors has on its balance sheet is it's about 80 ownership stake in Cruise”

Travis Hoium recommends buying General Motors stock as a play on the robotaxi market, specifically through its 80% ownership of Cruise. He argues that Cruise is already operational and scaling its autonomous ride-sharing service, unlike Tesla's unfulfilled promises. GM's current valuation is significantly lower than Tesla's, offering substantial upside if Cruise achieves its projected revenue targets, which Hoium believes are attainable given the market size and Cruise's cost-effective, driverless model.

“if you're interested in Robo taxis I recommend that you look primarily at cruise and as a result General Motor stock”

The analyst's primary interest in General Motors stems from its 80% ownership of Cruise, its autonomous driving subsidiary. He argues that Cruise's ride-sharing service, with its driverless model, will fundamentally change the cost structure of ride-sharing and could become a $50 billion business by 2030, making GM's current valuation highly attractive.

“If that happens Crews alone could be worth far more than what we're paying for General Motors today I think that's where the attractiveness of this stock comes from.”

The analyst is bullish on General Motors due to its majority ownership of Cruise, which he believes is well-positioned to be a leader in autonomous driving. He highlights Cruise's strategy of building a dedicated autonomous vehicle system and its network effects as key competitive advantages. The analyst also praises GM's decision to keep Cruise as a separate entity with outside investors and its own board.

“I'm very bullish on Cruise specifically and General Motors as a result.”

The YouTuber is bullish on General Motors not for its legacy auto business, but due to its majority ownership of Cruise, the autonomous ride-sharing company. Cruise is expanding into new cities and GM projects it to be a $50 billion revenue business by 2030, which the YouTuber believes will be the primary value driver for GM over the next decade.

“one of the companies that I'm really bullish on right now is General Motors and it's not because I like the Legacy auto business it's because I like the company's majority ownership of Crews the autonomous ride sharing company”

The analyst recommends General Motors as a value stock trading at an attractive valuation of about seven times earnings, with a solid core business. The primary upside comes from its 80% ownership of Cruise, an autonomous driving company. He believes Cruise could become significantly more valuable than GM itself, especially with plans for a million Cruise Origin vehicles by 2030.

“what I really like is the company's about 80 ownership stake in the company called Cruise that's the autonomous driving company that's building a ride sharing both vehicle and platform they're operating in three cities in the US already and I think this is the kind of business that could be ultimately far more valuable than General Motors”

The analyst is bullish on General Motors, citing strong Q1 earnings that exceeded expectations and increased full-year guidance, indicating robust demand and pricing power unlike competitors. He highlights the long-term potential of GM's Cruise autonomous driving unit, which management projects to generate $50 billion in revenue by 2030, as a significant value driver for the company.

“I'm a shareholder in GM and this is something I'm looking to be adding in the future as well.”

The analyst believes General Motors (GM) could be a 10x investment over the next decade, primarily due to its autonomous driving subsidiary, Cruise. While the core GM business is profitable and undervalued at 5.6 times earnings, the significant upside comes from Cruise's potential to disrupt the ride-sharing market with its fully autonomous vehicles, projecting massive revenue and operating profit potential if it scales to a fraction of Uber's current reach.

“General Motors is better positioned for the future of autonomous driving than you might think and I want to cover why this is a potential 10x stock in this video.”

Travis Hoium argues that General Motors is undervalued, trading at a low P/E multiple despite strong cash flow from operations. He believes the core business of trucks and SUVs remains robust, and GM's significant investment in EVs and autonomous driving positions it well for future growth and potential acquisitions in a turbulent market.

“I think strategically and from a value perspective this is a very well positioned company investor and investors should really like what they're getting in General Motors.”

The YouTuber is bullish on General Motors due to its rapid and significant ramp-up in electric vehicle production, which is outpacing Rivian. GM's established scale and history of production mean it avoids many of the challenges faced by newer EV companies, positioning it as a dominant player in the EV market, especially with upcoming models like the Silverado EV.

“If you're interested in electric vehicles you may actually want to look at General Motors it's bigger player than you might think I actually own both of these stocks but gm1 is one that I'm very bullish on in part because of its transition to electric vehicles.”

The analyst recommends General Motors as a cheap stock for long-term investors. Despite being a legacy automaker, GM is expanding its EV production and has a profitable manufacturing business. The stock trades at a low price-to-earnings multiple of six and includes an 80% ownership of Cruise, an autonomous ride-sharing company, which offers significant growth potential.

“with General Motors you're getting a very cheap stock in a single digit price to earnings multiple a company that's generating cash flow and basically for free you're getting this growth option with Crews so I really like both the value of the stock and the long-term growth potential there”

The analyst recommends buying General Motors stock due to its current undervaluation based on its core automotive business, which generates significant free cash flow. The primary long-term upside, however, comes from its autonomous driving unit, Cruise, which is seen as a potentially disruptive force in transportation with a unique business model and significant progress in commercialization. The analyst believes the market is underestimating Cruise's potential.

“one of my favorite stocks today is General Motors the company is trading at an extreme value on the market right now and there is a reason to believe this could be one of the dominant companies in autonomous driving long term”

The analyst recommends General Motors not for its traditional auto manufacturing business, but for its 80% ownership of Cruise, an autonomous driving company. They believe autonomous ride-sharing will be a massive market, with Cruise being a leader. GM's role as a manufacturer for Cruise allows it to participate in this future while its core business provides a cheap valuation and a 'call option' on Cruise's potential.

“I think in in the next 10 years this may be a service that is in over a hundred cities maybe even more than that.”

The analyst identifies General Motors as a value stock trading at approximately six times earnings, with significant upside potential if the economy improves. They highlight GM's opportunity for revenue growth as production increases and emphasize the hidden value of its 80% ownership in Cruise, the autonomous driving company, which is launching its Origin vehicle and expanding services, potentially disrupting ride-sharing markets.

“You're getting a value stock just their manufacturing operations and then you get this Cruise business, this autonomous driving business that could disrupt Uber and Lyft and Tesla and you get it for free.”

The analyst favors General Motors (via its Cruise subsidiary) for its pragmatic approach to autonomous driving. Cruise is already operating commercial Level 4 autonomous vehicles in geofenced areas, with regulatory approval and a clear path to scaling its ride-sharing service. This contrasts with Tesla's more speculative Level 5 ambitions.

“GM and crews are trying to build a level 4 autonomous vehicle they have demonstrated that they can do that they have the permits they're operating a commercial vehicle now the next step for them is just to scale it into and to get their Cruise origin out the door get it to more and more cities.”

The YouTuber is bullish on General Motors due to its significant ownership (80%) of Cruise, an autonomous driving company that is expanding its commercial operations and is seen as a leader in the space. He believes GM will eventually spin off Cruise, providing investors with a direct stake in the autonomous vehicle market, and that Cruise has a competitive advantage over Tesla in ride-sharing autonomy.

“This is honestly one of the reasons that I like General Motors stock. I don't love being in the auto manufacturing business but what General Motors has done is they've made themselves a third-party manufacturer for a cruise and allowed Crews to grow on its own General Motors owns about 80 percent of Crews well likely they will eventually spin off Crews into its own publicly traded company and investors will get a piece of that as well.”

The YouTuber recommends General Motors due to its strategic investment in Cruise, an autonomous driving company. Cruise is one of only three companies permitted to deploy driverless vehicles in California and is developing a purpose-built autonomous ride-sharing vehicle, the Origin, for 2023. GM's role as a contract manufacturer for Cruise's vehicles provides a unique business model that could disrupt traditional vehicle ownership, offering significant upside given GM's current valuation compared to competitors like Tesla.

“If you're interested in autonomous driving in the future of ride sharing gm is actually a company that you should consider through their ownership of crews that's why I own the stock and I think this is a company that is really underappreciated by investors right now”

The YouTuber recommends General Motors, noting that the removal of EA tariffs significantly reduces the cost burden on US-assembled vehicles, estimated at $2,000-$3,000 per car. This provides a substantial boost to margins, especially for companies like General Motors that operate on thinner margins.

“Back of the napkin math says that the tariff relief could mean between 2 and 4 billion swing per company for both Ford and General Motors.”

The analyst notes that Cathie Wood's Ark Invest added GM shares to its autonomous tech ETF while selling Tesla, suggesting that legacy automakers like GM might have upside potential in the robo-taxi space. GM trades at a significantly lower valuation compared to Tesla, making it an interesting alternative if one believes in the autonomous driving thesis.

“if you do believe that bull case for uh for tesla in the robo taxi service maybe you want to look at gm as well”

Cathie Wood expresses concern about GM, arguing that its stock gains from EV announcements are misplaced given that EVs are only 2-3% of sales. She suggests that if consumer preference shifts to electric vehicles, the remaining 97% of their gas-powered revenue base could become obsolete, leading to potential losses and credit issues in the auto sector.

“I look at the performance of stocks like GM and Ford uh they soared on those electric vehicle announcements think about that that's ridiculous it's only two percent of their sales and what if the other 98 or so forth are on their way out as the consumer preference shifts toward electric they have problems.”