General Motors May Beat Tesla To An Electric Vehicle Future

Nov. 29, 2022 8:18 PM ETGeneral Motors Company (GM)TSLA, F35 Comments
Harrison Schwartz profile picture
Harrison Schwartz
13.4K Followers

Summary

  • Over the past year and a half, automotive companies have been challenged by parts shortages and slowing economic demand.
  • General Motors and its peers appear likely to see EPS and sales decline next year as higher interest rates reduce demand and prices for new vehicles.
  • Compared to peers, General Motors is slightly cheaper due in part to its lower dividend yield.
  • General Motors is making much more significant long-term electric vehicle investments than Ford and is now outpacing Tesla in terms of Capex-to-sales.
  • GM may decline in the short term but has strong long-term prospects due to its vertically integrated expansion into EVs and massive equity valuation discount to Tesla.
Chevy Bolt Electric Vehicle Parked on Scenic Road in Joshua Tree National Park USA at Dusk

Boogich/iStock Unreleased via Getty Images

The US automotive market has been tumultuous over the past two years. The events of 2020 initially caused a significant decline in demand for vehicles but also spurred an even more substantial and long-lasting drop in vehicle production and the production

This article was written by

Harrison Schwartz profile picture
13.4K Followers
Harrison is a financial analyst who has been writing on Seeking Alpha since 2018 and has closely followed the market for over a decade. He has professional experience in the private equity, real estate, and economic research industry. Harrison also has an academic background in financial econometrics, economic forecasting, and global monetary economics.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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