Tesla (NASDAQ:TSLA) stock is on a losing streak today as shares trek steadily downward. Despite some growth last week, it’s clear that the overall outlook is bleak for the electric vehicle (EV) leader. Axios recently reported that two names took significant hits in its 2023 Axios Harris Poll 100 reputation rankings: Tesla and FTX. Nowadays, it’s not a good look to be in any category alongside the disgraced former crypto exchange platform. But given how much TSLA stock has suffered this year, the company really can’t afford further damage to its already struggling brand. On top of it all, competition is increasing as fellow automakers strive to become the next Tesla. One well-known brand may be on the verge of achieving this noteworthy feat.
One of the most iconic names in American industry, General Motors (NYSE:GM) owns an almost unmatched portfolio of beloved auto brands. It’s been making headways into the EV sector for some time, but now it is doubling down on its attempts to chip away at Tesla’s market share. This spells even more trouble for Elon Musk and Tesla as the company prepares for a turbulent quarter.
Is General Motors the Next Tesla?
When the topic of the next Tesla comes up, GM isn’t often at the top of the list. Experts have touted Rivian (NASDAQ:RIVN) as the most likely Tesla killer, while fellow legacy automaker Ford (NYSE:F) has been named to similar lists. But investors shouldn’t ignore General Motors.
GM’s brand portfolio is vast, including names such as Chevrolet, Buick and Hummer. This means it can take many companies and brands Americans already love and electrify them. Now General Motors’ electric vehicle department is shifting focus to a truly iconic brand.
American drivers have trusted Cadillac for generations. Now GM is gearing up to launch the Cadillac Escalade IQ, an electric version of its popular SUV. The company “promises the same commitment to craftsmanship, technology and performance that has helped the Escalade nameplate dominate the large luxury SUV segment for the last 20 years.”
Electrics Are a Perfect Step Forward for GM
After successfully launching the Hummer EV, taking another large luxury vehicle electric is a natural step forward for General Motors. The company has doubled down on large-scale EVs lately, a smart decision that could allow it to pull comfortably ahead of Ford and Rivian. Production for the Cadillac Escalade IQ is slated to begin in late 2023. When the vehicle hits the road, likely in 2024, it will be an excellent growth catalyst for GM stock.
Conveniently for investors, shares have been trending downward for the past two quarters. The combination of a looming catalyst with declining share prices makes for a valuable entry point for investors seeking exposure to the booming EV sector. Additionally, the company’s fundamentals remain encouraging. As InvestorPlace contributor Muslim Farooque reports:
“Fresh off a first-quarter earnings beat and improved forward guidance showcasing the positive impact of cost-cutting measures and internal efficiency enhancements. Therefore, there’s plenty to like about GM stock and its prospects in the EV space in the long run.”
Now that GM is gearing up to launch an exciting new EV, there is even more to like about it. The company is setting itself up well to become the next Tesla as it looks toward a promising year ahead.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.