• General Motors has significantly lowered its stock.

• General Motors is rapidly expanding its sales of electric vehicles in the United States and reducing costs.

• The automaker's restructuring business in China has brought positive results.

• Our 10 Better Stocks than General Motors›

General Motors (NYSE:GM) For many people’s investments, it may be an afterthought, but it may also be the best auto stock for investors to start investors today. Not only has the company flourished with sales of full-size trucks and SUVs, but the value returned to shareholders in electric vehicles (EVs) and in impressive edits has made largely progress.

Here are three reasons why GM may be the next stock you are going to buy.

There are two main ways companies return value to shareholders: through dividends or through stock buybacks. In the case of a stock buyback, when the company purchases the stock and retires it, earnings per share increases, thereby increasing the value.

The value of GM returning value to shareholders through share buybacks is incredible, and you can see the response of stock prices as the sales of outstanding shares fall.

It began in late 2023 when General Motors announced a huge $10 billion accelerated stock buyback program that was completed in the fourth quarter. General Motors approved a $6 billion buyback in June 2024, while automakers also raised its dividend by 25%.

Automakers’ cash flow is able to handle such actions. General Motors generated $14 billion in adjusted free cash flow in 2024 and returned approximately $7.6 billion to shareholders through dividends and buybacks, leaving a lot of liquidity for growth and strategic moves to offset the tariff impact.

This is not a problem when it comes to electric cars, but when they consume roads around the world. While trying to sell electric cars, balancing the sales of high-profit gasoline-powered SUVs and trucks is a tricky thing, but GM has found the balance. While releasing strong financial results driven by its internal combustion engine lines, the company also released 94% EV sales in the first quarter, gaining an impressive 10.4% market share in the U.S.

This parks GM in the U.S. No. 2 EV sales and marks Chevrolet as the industry's fastest-growing EV brand, powered by Equinox and Blazer EVS. In better news, about 60% of EV buyers are trading with non-GM vehicles, bringing more consumers into the brand.

GM still needs to work hard to reduce the cost of electric vehicles, especially batteries, to make it a big part of its business, but that's the future of the industry, and GM is currently in a good position in the U.S.