From a bird’s-eye view, it’s tempting to dismiss automotive giant General Motors (NYSE:GM) stock as an anachronistic enterprise. Yes, the legacy automaker has made a strong pivot to electric vehicles. However, sector leader Tesla (NASDAQ:TSLA) has long held a vice grip on the ecosystem, making a competitive charge difficult. Nevertheless, circumstances are falling favorably for GM stock, making it a worthwhile investment.

First, GM stock itself appears significantly undervalued compared to the rest of the auto industry. Second, the market appears to overstate Tesla’s viability ahead of serious challenges for the EV pioneer. Therefore, GM stock is quietly flying under the radar, making it an attractive idea for forward-thinking speculators. As a result, I am bullish on General Motors.

GM Stock Could Rise on Automotive Excitement

Primarily, GM stock stands to benefit from an exciting product portfolio. Yes, excitement is a subjective term. However, the concept is backed by objective data. For example, U.S. drivers spend on average 17,600 minutes driving each year. Over a lifespan, that could translate to 4.3 years of one’s life. That’s a long time sitting on a set of wheels.

With that in mind, buying a new (or new-to-them) car represents an investment of sorts for many drivers. Of course, most vehicles represent depreciating assets. However, because you’re spending so much time in a car, you want the best experience that you can comfortably afford. With a company like General Motors, it offers myriad options.

If you want an affordable SUV that can carry groceries and the kids, GM has your back with the Chevy Equinox or the Blazer. Should you prefer something more upscale, the company gives you the Cadillac brand. And if you want to experience the thrill of premiere automotive performance, you have the mid-engine Corvette, America’s supercar.

Best of all, General Motors has invested heavily in EVs, forwarding innovations such as its Ultium battery. Whatever the customer wants – and more specifically, whatever fits the customer’s budget – GM has it. That’s a huge advantage over pure-play EV manufacturers, which have resorted to price wars to boost sagging demand. Thus, it’s probably no coincidence that GM stock is up almost 23% year-to-date while TSLA is down almost 34%.

Chinese Competition Could Dominate EVs

Another factor that could benefit GM stock is that combustion-based technologies – whether pure play or hybrid – may see a longer relevancy pathway than previously expected. That’s because EVs are still more expensive in terms of upfront costs than their combustion-powered counterparts. And because of economic concerns, Tesla may lose significant sheen off its social cachet.

Let’s face reality – EVs are boring. Whenever one pulls up next to me, I don’t notice it audibly and that’s the point. However, it also means that at the core, there’s very little difference between a Tesla and any other EV, especially a Chinese-made EV. Should economic pressures such as inflation and high borrowing costs remain elevated, then over time, people transitioning to electric mobility will likely eschew brand image for price.

Without getting into pejoratives, an electric motor is an electric motor. It’s not like the difference between an inline-four-cylinder engine versus a V10. That’s a massive contrast that’s immediately recognizable.

So, with very little separating the heart of a Tesla versus a competing EV, both Tesla and pretty much any western pure-play EV company faces a severe long-term threat from China. It really just comes down to the math. When you factor in holistic costs – especially labor – Chinese manufacturers can produce more for less than their American counterparts.

Over the past several decades, manufacturing jobs didn’t move to China because we love the country so much. No, it just makes financial sense to do so. If that wasn’t the case, the jobs would never leave.

General Motors Makes a Great Value Play

Right now, GM stock trades for 4.91X forward earnings and 0.35X trailing-year revenue. As you might imagine, both of these stats rank lower than their sector median stats.

Now, some might argue that this favorable dynamic has materialized because the forward projections are modest. Analysts anticipate earnings per share for the current fiscal year to reach $8.99 on sales of $175.85 billion. Last year, EPS was $7.68 on revenue of $171.84 billion.

In other words, GM stock could be richly profitable but only benefit from a modest 2.3% growth rate. And fiscal 2025’s sales projection of $178.41 billion implies only 1.5% growth. However, these stats could be understated.

Again, General Motors offers a diverse and exciting product portfolio that fits practically every budget. It’s also ready to pivot more aggressively to EVs should market demand dictate it. And should China take over the EV space, there’s still a chance that GM could carve out a viable niche.

It’s a well-recognized and trusted brand. Further, its rich portfolio facilitates flexibility, which is crucial during these times. Therefore, GM stock appears an underappreciated buy.

On the date of publication, Josh Enomoto 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.