General Motors made the smartest move in years. Are these EV stocks you should buy now?

The difference between a good company and a great company can be as small as admitting you were wrong. It is all too common for companies to refuse to admit mistakes or even to admit fault. that’s not true general motors (GM) After originally planning to discontinue the Chevrolet Bolt electric vehicle (EV). Armed with new information and changing consumer demands, the automaker adjusted its strategy and it ultimately paid off.

What’s the story?

Originally, GM planned to send the Chevrolet Bolt off into the sunset, joining a long list of other discontinued models never to be seen again. The plan was to launch a redesigned lineup of EVs with a focus on the entry-level segment.

What’s interesting is that this plan will cost about $5 billion, and GM has decided to adjust its strategy considering all the setbacks the company has made due to its EV investments. The decision was made to revamp the Chevrolet Bolt EV rather than discontinue it after 2023.

best of both worlds

The next-generation Chevrolet Bolt EV will be the first Ultium-based model in North America to use lithium-iron phosphate battery cells (LFP). In addition to using the improved Ultium platform and latest software, the Bolt includes a charging port that allows you to: tesla‘s supercharger network.

The adjusted strategy will allow GM to get to market about two years faster and save the company billions of dollars while offering better driving, charging and ownership experiences at lower prices.

It couldn’t come at a better time. The EV market appears to be saturated at the higher end of the price range, with demand dwindling and customers demanding more affordable EV options. Drastically lowering the price point of EVs will be the next step toward realizing mainstream customer demand. This is a point the industry desperately needs to reach.

cross town rivalry

GM’s revamped Bolt is expected to arrive in 2025. Not only is this important for reaching people who want cheaper options, it can also help prevent them. ford motor company‘S (F -0.37%) A secret gamble to develop a low-cost electric vehicle platform.

During Ford’s fourth-quarter conference call, CEO Jim Farley noted that the company made a silent bet two years ago to begin developing a low-cost EV platform, a project that was separate from Ford’s main division.

Ford is pleased to have taken this step. The company lost approximately $47,000 per EV during the fourth quarter of 2023. We are especially paying attention to the cheaper Chinese models that will soon compete with it.

Is GM a buy?

GM has come a long way over the past decade, but its driverless technology ambitions, Cruise’s struggles and declining EV industry demand have pushed its stock down to a paltry price-to-earnings ratio of 5.4x.

If GM continues to generate profits through its traditional business dominated by trucks and SUVs as it restarts its Cruise business, and the Bolt provides a welcome jolt to EV sales, it could be a great buy at these levels for long-term investors.