In this piece, I evaluated two automobile stocks, General Motors Company (GM) and Nikola Corporation (NKLA), to determine which is a better investment. Based on a fundamental comparison of these stocks, I believe GM is the better buy for the reasons explained throughout this article.
Supply chain disruptions, high inflation, and rising interest rates led to a decline in the sales of light vehicles last year to their lowest level since 2012. Over 13.75 million light vehicles were sold the previous year, representing a year-over-year decline of 8% to 9%. However, GM stood out as it registered a 2.5% year-over-year rise in vehicle sales last year.
