Markets · Economy 51
Tesla ( TSLA -0.63% ) and General Motors ( GM -1.67% ) may seem light-years apart in how Wall Street views each automaker , but both are interesting stocks given what they can offer investors. If I had to choose just one to buy today, the answer isn't necessarily obvious. Let's have a deeper look.
GM General Motors $75.92 -$1.29 (-1.67%) NYSE · As of 4:00 PM ET 10/23/26 GM is buying back shares GM doesn't grab headlines like Tesla, but the legacy car and truck manufacturer is posting numbers that should attract buy-and-hold investors. On Oct. 20, GM released its third-quarter results, which showed revenue of $50 billion, a nearly 3% increase from last year. The company also approved a new $20 billion share buyback and increased its full-year guidance for adjusted automotive free cash flow to $11.5 billion to $12.5 billion.
Wall Street wasn't overly impressed with GM's results. It instead focused on potential cost increases due to inflation and lingering electric-vehicle losses. I believe these fears are largely overblown, and there was more positive news for GM than negative with this report.
Image source: Getty Images. Tesla's future is promising, but pricey Tesla trades at a premium, but that's because Wall Street has high expectations for Elon Musk's company. Tesla delivered 486,532 vehicles in its latest quarter, beating analysts' expectations but down more than 2% from last year.
Investors in Tesla aren't paying for just EVs. They're investing in Tesla's robotaxis, Optimus, and full self-driving capabilities. It's a far more complicated and multifaceted manufacturer than GM or other legacy automakers.
TSLA Tesla $372.22 -$2.36 (-0.63%) NASDAQ · As of 4:00 PM ET 10/23/26 Even with Tesla's falling net income, the stock is still trading at an incredible premium. Tesla's trailing price-to-earnings ratio is about 351, while its market cap is currently $1.5 trillion. Tesla is priced for perfection.
An investment now could pay off, but there are real execution risks. There's also a lot of talk about Tesla potentially merging with Space Exploration Technologies ( SPCX +1.89% ) in the near future, which adds another layer of uncertainty to the stock. If I had to choose today, I'd pick GM as the stock to buy.
There's more risk and potential upside with Tesla, but GM is consistently profitable, buying back shares, and trading at a very reasonable price.
Source: The Motley Fool
