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Up 73% in Five Years, Is it Too Late to Buy General Motors Stock?

General Motors (GM) reported strong revenue growth despite macroeconomic headwinds like high oil prices and interest rates. The company has diversified its supply chain and is benefiting from higher average selling prices for vehicles, a trend exacerbated by the near extinction of new cars under $25,000. Despite intense competition and overcapacity in the auto industry, particularly from Chinese EV manufacturers, GM's market share in trucks and SUVs offers some protection. The creator questions whether the stock is a buy or avoid given these factors.

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Tickers discussed in this post

TSLANeutralLow ConvictionSignal-backedSecondary

Tesla is discussed as an example of a company successfully convincing investors to value it like an AI or technology company, not just a car company, allowing for premium valuations.

FNeutralLow ConvictionSignal-backedSecondary

Ford is trading at a similar low valuation to GM, suggesting it may also be undervalued but without a specific buy/sell recommendation.

GMNeutralMedium ConvictionSignal-backedPrimary

General Motors is facing macroeconomic headwinds and intense industry competition, but its strong revenue growth and market position in trucks and SUVs warrant a closer look.

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