Stock Analysis & Valuation General Motors Company (8GM.DE)

• Previous Close: €71.03
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	30.50	-57
Intrinsic value (DCF)	33.82	-52
Graham-Dodd Method	63.20	-11
Graham Formula	78.10	10

Strategic Investment Analysis

Company Overview

General Motors Company (8GM.DE) is a global automotive leader headquartered in Detroit, Michigan, with a diversified portfolio of iconic brands including Buick, Cadillac, Chevrolet, GMC, and Wuling. Operating across North America, Asia Pacific, and other key markets, GM designs, manufactures, and sells trucks, crossovers, cars, and automotive parts. The company also provides connected vehicle services, autonomous driving technology through its Cruise segment, and financial solutions via GM Financial. With a strong focus on innovation, GM is investing heavily in electric vehicles (EVs) and software-enabled mobility solutions. As a major player in the Consumer Cyclical sector, GM competes in the Auto - Manufacturers industry, leveraging its extensive dealership network, brand equity, and technological advancements to maintain market leadership. The company's strategic initiatives in electrification and autonomous driving position it for long-term growth in an evolving automotive landscape.

Investment Summary

General Motors presents a compelling investment case with its strong brand portfolio, robust revenue base (€187.4B in FY 2024), and strategic pivot toward electric and autonomous vehicles. The company's diluted EPS of €6.37 and operating cash flow of €20.1B reflect solid profitability, though its high total debt (€130.7B) warrants caution. GM's beta of 1.36 indicates higher volatility relative to the market, which may appeal to growth-oriented investors. The dividend yield, with a payout of €0.466 per share, adds income appeal. However, risks include intense competition in EV adoption, supply chain vulnerabilities, and macroeconomic pressures affecting auto demand. Investors should weigh GM's innovation investments against execution risks in its transition to next-gen mobility.

Competitive Analysis

General Motors holds a competitive edge through its diversified brand strategy, strong North American market presence, and aggressive investments in EV and autonomous technology (Cruise). Its scale allows cost efficiencies in manufacturing and R&D, while its GM Financial segment provides captive financing advantages. However, GM faces stiff competition from legacy automakers and EV pure-plays. Unlike Tesla, GM lacks first-mover advantage in EVs but benefits from established production capacity and dealer networks. Compared to Ford, GM has a more balanced global footprint, especially in China through its Wuling joint venture. Toyota and Volkswagen outpace GM in hybrid technology and global scale, respectively. GM's software and connectivity offerings (OnStar) differentiate it, but lag behind Tesla's tech integration. The company's ability to execute its Ultium EV platform rollout and scale autonomous driving will be critical in maintaining competitiveness against both traditional rivals and disruptive entrants.

Major Competitors

• Ford Motor Company (F): Ford is GM's closest domestic rival, with strong truck (F-Series) and SUV segments. It lags in EV adoption but invests heavily in electrification (Mustang Mach-E). Ford Credit competes with GM Financial. Ford's simpler brand structure (vs. GM's multi-brand approach) allows focused marketing but limits premium segment reach.
• Tesla, Inc. (TSLA): Tesla dominates the EV market with superior battery tech and software integration. Its direct sales model bypasses dealerships, unlike GM. Tesla's brand cachet and Supercharger network are key advantages, but production scalability and quality control issues persist. GM's broader price-point offerings and ICE profits provide near-term stability Tesla lacks.
• Toyota Motor Corporation (TM): Toyota leads in hybrid technology (Prius) and global sales volume. Its conservative EV strategy contrasts with GM's aggressive targets, but strong reliability reputation and lean production give Toyota cost advantages. Toyota's luxury brand (Lexus) outperforms Cadillac in most markets, though GM leads in full-size trucks.
• Volkswagen AG (VOW3.DE): VW Group surpasses GM in European and Chinese market share. Its MEB EV platform is more mature than GM's Ultium, but VW struggles in North America. VW's multi-brand strategy (Audi, Porsche) covers premium segments better than GM, though GM's truck dominance in the US is unchallenged by VW.
• Stellantis N.V. (STLA): Formed from FCA-PSA merger, Stellantis rivals GM in Jeep (vs. GMC) and Ram (vs. Chevrolet trucks). Stellantis leads in European commercial vehicles but has weaker EV offerings. GM outperforms in China, while Stellantis relies more on Latin America and Europe. Both face challenges integrating legacy ICE and new EV lineups.
• Honda Motor Co., Ltd. (HMC): Honda competes with GM in crossovers and entry-level EVs. Its strength in motorcycles and engines complements auto sales, unlike GM's focus. Honda's partnership with GM for EV batteries shows collaboration potential, but GM's larger scale in North America and broader brand portfolio provide more diversified revenue streams.