## GM Outshines Tesla in 2024: Stock Gains, Sales, and Dividends Tell the Story
While Tesla’s stock has taken a hit, dropping about 13% year-to-date, General Motors has soared by nearly 49%. This stark contrast reveals a significant shift in the automotive landscape, favoring the traditional automaker over the EV giant.
Sales Dominance and Diversification:
Although Tesla remains the top-selling EV manufacturer in the U.S., GM reigns supreme as the overall best-selling automaker across all fuel types. In the last quarter, GM delivered a staggering 659,601 vehicles in the U.S. alone, eclipsing Tesla’s global sales of 462,890. GM’s commitment to EV expansion is evident, surpassing Ford as the second best-selling EV maker after Tesla in the recent quarter.
GM’s advantage lies not just in its overall sales volume but also in its diversified product offerings for American consumers. With eight EV models available in the U.S. compared to Tesla’s four, GM caters to a wider range of preferences. Furthermore, GM has introduced new EVs to the market this year, while Tesla grapples with concerns over its aging lineup.
Margin Squeeze and Dividend Advantage:
Tesla’s struggles extend beyond sales. The company’s adjusted EBITDA margin has been on a downward trajectory over the past several quarters, with the second quarter reporting a margin of 14.4%, down from 18.7% in the same period last year. This contrasts sharply with GM’s robust EBIT adjusted margin of 8.4%, slightly higher than the previous year.
Adding to the disparity, GM rewards its shareholders with quarterly dividends. The company’s Board of Directors recently declared a dividend of $0.12 per share payable on December 19th, 2024, while Tesla has yet to offer any dividends to its shareholders.
Investment Returns: A Tale of Two Stories:
The contrasting fortunes of the two companies are reflected in their stock performance. An investment of $1,000 in GM at the beginning of 2024 would have yielded nearly $1,490 as of the recent close. In contrast, an equal investment in Tesla would have resulted in a loss, leaving investors with about $877.
