Why Investors Should Be Bullish on General Motors Even as U.S. Sales Slip
Key Points
General Motors is pivoting into energy storage to help offset substantial EV losses.
The automaker is currently the top-selling truck and SUV manufacturer in the U.S.
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General Motors (NYSE: GM) is not having an easy time selling electric vehicles (EVs) in the U.S. Once again, second-quarter U.S. sales were dragged down by EVs, with the company posting a 4.2% drop to just under 715,000 vehicles. As federal incentives fall by the wayside and demand for EVs hits a wall domestically, GM is focusing on other aspects of the business to pick up the slack.
GM has one newer revenue engine that could have an outsize impact on the company's financials. Recently, the automaker pivoted into energy storage. Energy storage demand is exploding around the country as AI data centers continue to put immense pressure on the grid. GM can easily pivot many of its existing assets into this initiative.
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The energy storage market is expanding rapidly, making this a smart move for GM. The total addressable market could reach at least $250 billion by the early 2030s, according to research.
GM's EVs may be struggling, but it's also still the top-selling automaker of SUVs and trucks. The strong traditional combustion-engine business, combined with the pivot into energy, makes GM a compelling buy for long-term investors as the stock is relatively inexpensive right now.
The automaker's energy strategy won't be a short-term win. Investors will need patience and a longer time horizon to really see the fruits of the endeavor. GM's stock is down more than 5% in 2026, and its forward P/E ratio is in the single digits, so for those bullish on sustained energy demand through the next decade, now could be the right time to buy and hold General Motors stock.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
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