General Motors (GM) Following Its Battery Recycling Milestone Looks Undervalued

Closed-loop EV battery milestone puts General Motors stock in focus

General Motors (GM) just completed a closed-loop EV battery recycling pilot that produced new cells using cathode material made entirely from recycled nickel, cobalt and manganese, putting fresh attention on the stock.

Recent sessions have been choppy for General Motors, with the share price slipping 5.1% over the past 30 days and 2.3% over the last week, even as the 1 year total shareholder return of 43.7% and 3 year total shareholder return of about 1.7x highlight momentum that long term holders will be watching as GM pushes harder into EV recycling, charging partnerships and capital return plans.

Scan other EV and auto players benefiting from similar momentum in battery technology and charging partnerships by checking the curated 29 high quality undervalued stocks alongside General Motors.

General Motors is pushing hard on batteries, charging and cash returns, even as the share price has cooled in recent weeks. Do those strengths already sit in the US$83.45 quote, or not yet?

Most Popular Narrative: 17% Undervalued

General Motors is trading at $83.45 against a widely followed fair value estimate of about $100.04. The prevailing view prices in a meaningful gap that investors are trying to explain through earnings power, software optionality, and capital allocation.

The growing monetization of software and services such as Super Cruise and OnStar, evidenced by $4 billion in deferred revenue and rapid subscriber growth, creates higher-margin recurring revenue streams. This is seen as supporting long-term earnings expansion beyond traditional vehicle sales. GM is using enhanced digitalization, AI, and over-the-air diagnostics to improve vehicle quality and manufacturing efficiency, which is expected to reduce warranty costs, support customer loyalty, and potentially improve net margins over time.

See why 98 investors see General Motors as 17% undervalued.

Result: Fair Value of $100.04 (UNDERVALUED)

Still, the General Motors story can be knocked off course if tariff headwinds persist, or if higher warranty costs around early EVs prove stickier than hoped.

Find out about the key risks to this General Motors narrative.

Another View: What General Motors' P/E Is Signalling

On a multiples check, General Motors trades on a P/E of about 39.4x. That is far above the global auto group at 13.8x, the peer average at 28.7x, and the fair ratio estimate of 25.8x. This spread implies the valuation could compress if expectations cool.

For investors weighing the earlier fair value estimate against this richer earnings multiple, the key question is whether GM's software, EV, and cash return story can keep sentiment strong enough to justify that gap.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed signals around General Motors can be confusing, so act quickly and base your own view on the data. Start by weighing the balance between upside potential and downside risk by reviewing the 3 key rewards and 4 important warning signs.

Looking for more investment ideas beyond General Motors?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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