General Motors Company GM has witnessed a 7.3% hike in its year-on-year sales growth in the second quarter, totaling deliveries of 746,588 vehicles, following a 16.7% increase in the first quarter. Deliveries rose 12% year over year in the first half of 2025. It was GM’s best first-half since 2019. In contrast to this, Tesla, Inc. (TSLA) has seen its deliveries shrink in Q2 as it struggles with a dated lineup, expensive pricing and the controversial politics. Tesla reported 384,122 vehicle deliveries, a 14% straight decline from the year-ago level of 443,956. This was the second consecutive quarter that witnessed double-digit declines.
GM has been continually launching newer and redesigned models over the past two years. The company now has a lineup of 11 EV models, of which Chevrolet has displayed the highest growth 134% in the H1 sales, led by Equinox EV, which has secured its place among the top three best-selling EVs. Similarly, Cadillac emerged as the luxury EV market share leader in Q2. GM boasts of an EV market share of 16%, close to its total market share of 17% in the second quarter, following its 100% growth surge in EV sales.
The boost in sales is a result of its investments in crossovers, SUVs and pickups, both gas and electric, paired with great execution. This enabled GM to beat the estimated 4% total auto industry growth. To keep up with the wave, GM is planning to further invest around $4 billion to strengthen its U.S. production and combat the impact of tariffs and other government policies.
Zacks Rank & Key Picks
GM and TSLA currently carry a Zacks Rank #3 (Hold) and Zacks Rank #5 (Strong Sell), respectively.
Some better-ranked stocks in the auto space are Ferrari N.V. RACE, Luminar Technologies LAZR and Westport Fuel Systems WPRT. While RACE sports a Zacks Rank #1 (Strong Buy) at present, LAZR and WPRT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RACE’s current-year earnings is pegged at $9.89 per share, indicating a 7.97% year-over-year rise.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.75%. RACE’s shares have gained 16% in the past year.
The Zacks Consensus Estimate for Luminar’s 2025 loss is pegged at $4.29 per share, indicating an improvement of 53.57% from year-ago levels. The company’s earnings beat the consensus estimate in each of the trailing four quarters, with an average surprise of 11.79%.
The Zacks Consensus Estimate for WPRT’s 2025 loss is pegged at $1.27 per share, indicating an improvement of 40.93% from year-ago levels. The company’s earnings beat the consensus estimate in three of the trailing four quarters.
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General Motors Company (GM): Free Stock Analysis Report Westport Fuel Systems Inc. (WPRT): Free Stock Analysis Report Ferrari N.V. (RACE): Free Stock Analysis Report Luminar Technologies, Inc. (LAZR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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