Easy EV Profits: Shift Into Drive With General Motors Stock

Stocks to buy

For generations, General Motors (NYSE:GM) was known for gigantic gas-guzzling cars and trucks. General Motors is changing with the times. To ride the vehicle-electrification trend, invest in General Motors stock.

Besides, value-focused investors ought to know that General Motors shares are cheap, cheap, cheap. Believe it or not, General Motors’ GAAP-measured trailing 12-month price-to-earnings ratio is just 5.62x.

Is General Motors serious about the electric vehicle (EV) movement, though? As we’ll discover, the answer is a resounding yes. Even beyond the company’s reasonable valuation, General Motors offers investors prime portfolio access to the latest and greatest in clean-energy vehicles.

EV Production Ramp-Up Coming

Notably, a recent report from Bloomberg identified General Motors as potentially becoming the “biggest driver of EV growth in the U.S.” for the remainder of 2024. That’s a big statement, but it’s not unjustified.

For one thing, General Motors is making EVs more affordable with the company’s $35,000 Equinox electric SUV. General Motors is also producing its “Silverado and GMC Sierra electric pickups with up to 450 miles of range,” Bloomberg observed.

Here’s the real kicker, though. General Motors expects to “produce 200,000 to 300,000 Ultium-based EVs this year,” with Ultium referring to a line of EV batteries.

Amazingly, this could represent a 50x annualized production-rate increase when compared to the 5,800 Cadillac Lyrics that General Motors sold in 2024’s first quarter.

Costco Helps General Motors Sell EVs

Here’s a not-so-trivia piece of trivia that you probably didn’t know. Surprisingly, shoppers can buy a General Motors EV at big-box retail store chain Costco Wholesale (NASDAQ:COST).

I never imagined purchasing an EV along with my groceries, but it’s 2024 and the game has changed for vehicle sellers. Come to think of it, the Costco partnership is a brilliant move for General Motors.

CNBC recently reported that Costco had over 50 million members in the U.S. Plus, General Motors is the “exclusive automotive partner for Costco Auto in Canada.”

Thus, offering General Motors’ EVs at Costco locations throughout North America actually makes perfect sense. At the very least, the partnership might expose casual shoppers to clean-energy vehicles.

This could open the door to faster EV adoption while also spurring sales of General Motors’ electric cars and trucks.

General Motors Stock: The Right EV Pick at the Right Price

General Motors isn’t overvalued at all, and clearly, the company is serious about ramping up its EV production pace. Selling EVs with Costco’s help is a savvy strategy for General Motors.

General Motors is a clean-energy vehicle manufacturer that investors can’t afford to ignore. So, whether you’re a value hunter or an EV-industry bull or both, now’s the time to buy General Motors stock

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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