• General Motors was founded in 1908 in Detroit, Michigan, and has since grown to include almost 400 facilities across six continents 
• The company had its IPO on the New York Stock Exchange in 1916, under the GM stock ticker. General Motors is a constituent of the S&P 500 - the benchmark index of the United States stock market
• The history of the company dates back to the early stages of the global automotive industry 
• The company employs over 167,000 people and has an annual production output of almost 6 million units per year 
• In 2020, General Motors plans to fully electrify its vehicle lineup by 2035 
• GM signed a partnership agreement with Honda in 2021 to collaborate on the development of electric vehicles 
• As of April 2023, General Motors offers a modest annual dividend yield of 1,06% or $0.09 per share 
• General Motors has invested in a number of transportation startups, including Cruise, which develops self-driving systems for long-haul trucks
• General Motors is the parent company of several globally recognized brands, such as GMC, Chevrolet, Buick, and Cadillac
• As of April 2023, General Motors had a market capitalization of over $47.5 billion 

General Motors stock has grown massively since the start of the Covid-19 pandemic - nearly tripling in size over the course of two years. However, the past 12 months have seen an inconsistent performance from the stock, with wild upswings and downfalls being frequent. 

The general instability in the global automotive market, due to ongoing supply chain constraints, high inflation, and curbed consumer spending, has had its effects on GM’s bottom line and stock performance. However, the company is still adamant about reaching its long-term goals and the stock has slowly regained its footing since the start of 2023. 

With current valuations, still far below the all-time highs of 2021, General Motors has decent room for growth in the long run, as the company has plans to invest billions of dollars in bolstering its EV lineup - expecting to fully transition to electric vehicles by 2035. 

In terms of financial performance, General Motors’ bottom line has seen major improvements over the past quarters, with Q4 2022 showing a substantial growth in revenues and earnings, despite the shrinking net profit margin:

• Quarterly revenue of $43.11 billion - up by 28.36% You
• Net income increase of 14.82% - reaching $2 billion 
• Net profit margin shrunk by 10.42% to 4.64%

The tightening of GM’s profit margin has been a symptom of increased materials costs and supply chain issues, which have been major problems faced by the global automotive industry. With solid revenue and earnings growth, General Motors solidifies its spot as one of the best options for investors to consider for their long-term portfolios. 

GM has an annual dividend yield of 1.06%, which is modest when compared with some industry peers, such as Ford, which might not attract as many dividend investors to the stock as competitors. 

Before investing in General Motors’ stock, investors should first consider the key advantages and disadvantages associated with the automotive industry, as well as GM in particular. Doing so can help investors consider multiple approaches to analyze GM stock and decide whether the company is the right choice for their portfolio. 

Pros

• Established brand - General Motors is a household name in the automotive industry and owns and operates brands, such as Chevrolet, Cadillac, Buick, and GMC
• Low valuation - General Motors is undervalued when compared to other major players in the automotive industry, which gives it plenty of room for future growth
• Dividends - while GM’s current dividend yield might not be very high, the company has a long track record of successful dividend payments and improved operational performance could boost future dividends 
• Electric focus - GM has pledged to fully transition to producing electric vehicles by 2035, which makes the company very attractive to long-term investors who believe in EVs

Cons

• Cyclical industry - the automotive industry is a highly cyclical one, which can lead to volatile stock performance and unfavorable operational performance during economic downturns 
• Competition - the automotive industry is known for its fierce competition and General Motors competes with some of the largest companies in the world
• Dependence on key markets - a bulk of GM’s revenues comes from the United States and Chinese markets, which exposes the company to concentrated economic and political risks 
• Regulations - many countries have plans to ban internal combustion engines in the future, which means that automakers such as GM have to race against time to make a successful transition to EVs in time 

• General Motors is one of the oldest and largest automakers in the world
• The company went public in 1916 and is listed on the New York Stock Exchange, under the GM ticker. The stock is a constituent of the S&P 500 - the benchmark index of the U.S. stock market
• General Motors has unveiled plans to switch to fully producing electric vehicles by 2035
• GM stock has grown considerably since the start of the Covid-19 pandemic - nearly tripling in value at its peak in 2021
• General Motors is a dividend-paying stock and maintains a 1.06% annual dividend yield as of April 2023 
• GM stock is undervalued compared to industry peers, which makes it a solid long-term investment