Sick of Tesla and Looking for a Climate Trade? Think General Motors

Tesla's meteoric rise over the last couple of years has disconnected the company's share price from its fundamental value, in my view. Consider that Tesla is still a barely profitable company whose market capitalization exceeds all other major US, European, and Japanese auto companies combined. What's more, Tesla's sales are just 1/50th of the other major automakers. 

Enter General Motors (GM), which announced late last week they were setting a goal of 2035 for phasing out gasoline- and diesel-powered vehicles, which is a huge deal for GM -- vehicles that run on fossil fuels make up approximately 98% of GM's total sales. The announcement is a monumental shift in the company's long-term strategy, and sets it up to compete with Tesla in the decades to come. 

The available market share for EV sales is still very much up for grabs -- about 2.2 million EVs were sold globally in 2020, which made up a mere 3% of overall auto sales. Imagine a time when 50% of all auto sales are EVs! Who will be selling the most vehicles then? 

GM's decision comes at a time when the market is pushing corporations towards climate-friendly policies and emissions-conscious production. GM took a big step last week in saying it wants to be a long-term player. 

So which stock does Tickeron's A.I. like the most now? Below, A.I.dvisor runs analytics on both stocks side by side, with actionable trade ideas.