General Motors Stock Is Bullish

last updated on

General Motors Stock Is Bullish

Why You Should Be Bullish On General Motors Stock

General Motors is having a hard time selling EVs in the US market. The Q2 sales data was not good, mostly due to the EVs. The data showed a 4.2% decline in sales as the company only sold 715,000 vehicles.

Looking ahead, the federal incentives will likely go away while the EV demand is also weak. Amidst all of this, General Motors is also focusing on its other businesses.

General Motors Is Moving Into Energy Storage Business

General Motors has recently moved into the energy storage business. This particular business is in high demand, mainly driven by AI data centers.

The AI data centers are putting a lot of pressure on the electricity grid. So, that's one area where General Motors can step in and secure some serious profit.

According to analysts, the addressable energy market will be worth $250 billion in the next 4-5 years. So, if General Motors can manage to grab a portion of it, it would change things for good.

Also, GM is still making top-selling trucks and SUVs. So, even if the company is struggling in EVs department, it makes up for it with non-EV vehicles.

Analysts think that General Motors' pivot into energy can really drive up the share price. Also, the energy storage business is in its early stages. So, getting an entry into the General Motors stock right now can be a really good option.

However, it is worth mentioning that General Motors stock is only best for long-term investors. After all, it can take years for the energy storage business to start having a positive impact on GM's revenue.

The forward P/E of General Motors is still in single digits. So, if General Motors indeed manages to make it big in the energy market, the upside in the stock price will be massive.

Trending Stories