Stock Snapshot (as of Sep 8, 2025)

• Current Price: ~$58 (near 52-week highs)

• Market Cap: ~$55 billion

• Recent Rally: +23% in the last 3 months (stock up ~10% year-to-date)

• 52-Week Range: $41.60 – $61.24

  
  

For a primer on finding quality undervalued stocks, see my guide on How to Find Cheap Stocks to Buy Now with Strong Fundamentals.

Why GM Could Be Poised for Long-Term Growth

• Deep Value with Strong Cash Flows – GM trades around 6× forward earnings, far below the industry average (~17×) and light-years from Tesla’s triple-digit multiple. In other words, a lot of pessimism is baked in. Yet GM’s core business is solidly profitable, fueled by lucrative truck/SUV sales and hefty free cash flow ($2.8 billion in Q2 auto FCF). The company also sports a mere ~0.8× price-to-book ratio, highlighting a “value stock” profile. This strong fundamental base provides a margin of safety while investors wait for the growth story to unfold.

  
  

• EV Growth and Tech Pivot – Don’t count this “old” automaker out of the electric future. GM’s EV sales nearly doubled (+94% year-over-year in Q1), vaulting it to the #2 spot in the U.S. EV market. Several of its new EV models are already generating profits, a promising sign for margins. Importantly, CEO Mary Barra has shifted gears on autonomous driving strategy: instead of pouring cash into a costly robotaxi rollout, GM is refocusing Cruise LLC on personal autonomous vehicles and driver-assist tech. The company is leveraging its well-regarded Super Cruise system and a partnership with NVIDIA to develop AI-powered self-driving features. By taking a more measured, “capital-efficient” approach (as Barra calls it) to EV and AV expansion, GM aims to innovate without burning cash at the rate of some rivals. This strategic pivot could make GM a stealth winner in the race for next-gen mobility.

  
  

• Big Backing and “Upside Potential” – Wall Street is starting to warm up to GM’s story. In July, Benchmark initiated coverage on GM with a Buy rating and a $65 price target, applauding the company’s resilient cash generation and balanced EV strategy. The analysts noted GM’s EV approach “aligns production with consumer demand” to protect margins. With ~$24 billion in cash on hand and an expected $7.5–$10 billion in automotive free cash flow this year, GM has the firepower to invest in growth while returning capital to shareholders. In fact, GM has been buying back stock, which boosts its earnings-per-share and underscores management’s confidence. Despite the recent run-up, Benchmark argues that GM remains “mispriced relative to its long-term value creation potential”. On social media, some investors have even floated GM as one of the best undervalued stocks to buy now, noting its low valuation and improving tech credentials. In short, both fundamental analysts and the online investing crowd are starting to see a potential value + growth story in GM.

  
  

Trade Setup & Targets

• Buy Zone: Mid-$50s – The stock’s recent breakout above $55 puts it near highs. Looking to accumulate on any dip into the low-to-mid $50s could offer a reasonable entry, given prior support around around $50.

  
  

• Upside Target: ~$65 – This roughly aligns with Benchmark’s price target. A move to the mid-$60s would mark about +12% upside from current levels, potentially achievable if GM delivers more good news on EV sales or autonomous progress. Above $61 (the 52-week high), there’s little immediate resistance until the mid-$60s.

  
  

• Suggested Stop-Loss: ~$50 – A drop back below $50 would undercut the recent rally base and support, signaling that bullish momentum may be fading. Consider cutting losses if the stock closes below this level, as it could retest the $40-something range.

  
  

Technical traders will be watching to see if GM can decisively push past the $60-$61 area. Strong volume above that zone might accelerate the uptrend. Conversely, failure to hold recent gains could lead to some consolidation – which long-term value investors might view as a second chance to buy in.

Risks to Watch

• EV Transition & Competition: Auto manufacturing is a tough, capital-intensive business. GM is racing to ramp up EV production, but faces fierce competition from Tesla and new entrants (as well as legacy peers like Ford). A price war or slower-than-expected EV adoption could pressure GM’s margins. Additionally, the autonomous vehicle segment is unproven – technical or regulatory setbacks in self-driving technology could derail some of the recent optimism.

  
  

• Economic & Execution Risks: As a cyclical company, GM’s fortunes are tied to consumer demand. Higher interest rates or an economic slowdown could dent vehicle sales (especially big-ticket EVs). The company also faces labor and supply chain challenges; for example, ongoing union negotiations or parts shortages could inflate costs or disrupt production. And while GM’s valuation is cheap, it’s partly because investors remain skeptical of its ability to execute on new initiatives. Any sign of falling behind (in software, batteries, etc.) might keep the stock stuck in “value trap” territory.

  
  

Is GM a Good Investment Idea?

For investors seeking value with a catalyst, General Motors offers a compelling (if moderate-risk) thesis. The stock checks the value boxes – low P/E, strong balance sheet, solid cash flows – while also giving exposure to transformative trends like electric vehicles and AI-driven autonomy. In many ways, GM is an undervalued stock hiding in plain sight: a profitable industrial stalwart that’s reinventing itself for the future. If management delivers on the EV/AV roadmap, patient shareholders could see considerable upside over the long haul. At the same time, one should temper expectations – the upside may take a few years to fully materialize, and there could be bumps on the road (both literally and figuratively).

Overall, GM looks like a calculated bet on the evolution of transportation. It may not have the glamour (or lofty valuation) of a pure tech startup, but that’s exactly why it could reward those who get in before the wider market recognizes its progress. For a long-term portfolio, General Motors is emerging as a rare breed: a value stock with credible tech-driven growth potential.

Do you think GM can close the gap with Tesla and become a leader in the EV/autonomous era, or will it always trade at a discount?

Let us know your thoughts in the comments below!

Disclaimer: This post is for informational and discussion purposes only and does not constitute financial advice. Always do your own due diligence before investing.