Last Updated on January 20, 2021 by Henry John
“All the technological advances that makes Tesla look promising to consumers and investors alike, are inherent in GM. And GM is not a threat to Tesla for the next decade, it’s an imminent threat. A competitor with strong footings in the automobile market.” Tesla’s Major Competitor: General Motors is becoming the Real Deal
I’ve been GM bullish for a long time now, and it all began with Tesla redefining how EV stocks are valued.
‘We still do believe in an all-electric future, and we are using this time to accelerate our work. And we believe, “let’s get to all-electric vehicles as quickly as possible”’ GM Chairman and CEO Barra Mary, speaking on CNBC’s Squawk Exclusive.
With this stance, GM made their intent to go big on electric vehicles, and their cause was further strengthened by their investment in Cruise, a world-class autonomous vehicle company.
GM didn’t just talk of ‘making the transition to become an all-EV company’, they put their money where their mouth is.
A series of investments, both in research and acquisitions, over the years has seen GM rise as a major force in the EV market, especially from a technological standpoint.
Putting all this in perspective, along with the fact that GM’s P/E ratio was below 30, it became clear that General Motors will be yet another company that will benefit enormously from the EV rush.
And with that clarity one thing became even more clear: Investing in General Motors.
Checkout: 3 Ways to make money off the EV Rush
Last week, I sent an email to my subscribers about the three moves I was making in the market at that time. In one of the moves, I announced that “I made my first big move going heavy on General Motors (15% of my portfolio is now on GM)”.
It did not take too long for General Motors to reward my trust. The stock is now up over 35% YTD, more than Tesla.
I was pumped yesterday, when the stock went up almost 10%. I kept punching the air, honestly, I felt so good, especially because I received a lot of sticks when I wrote that GM is Tesla’s Major Competitor and its stock was bound to explode soon.
The catalyst for yesterday’s spike was the announcement of a “long-term strategic relationship” General Motors entered with Microsoft (MSFT) focused on GM’s autonomous tech division, Cruise.
At the time when I started recommending GM, the company’s effort were being downplayed by a lot of analysts. But now, things has taken a turn for good, the lights is now on General Motors. The company is now getting the attention it deserves, especially from investors.
The rise of General Motors is just getting started and it’s not too late to get on the GM Rocket.