GM Just Announced a $20 Billion Buyback. Tesla Trades at 350 Times Earnings. Here's Which Auto Stock I'd Buy Today.

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GM Buyback vs Tesla's Premium Price: Which Auto Stock to Own?

General Motors’ $20 billion share buyback and solid earnings contrast sharply with Tesla’s sky-high valuation and uncertain outlook.

General Motors just showed why it deserves a closer look in the auto sector. With $50 billion in Q3 revenue and a hefty $20 billion buyback, GM is signalling confidence backed by improving free cash flow. Its valuation is reasonable, especially compared to Tesla’s staggering 350 times earnings multiple. Tesla’s future is exciting but highly speculative, betting on robotaxis and autonomous tech that may or may not pan out anytime soon. The South African angle is interesting too—our rand and local investors tend to favour steady cash generators in resource-heavy environments. GM’s solid free cash flow and shareholder return programme offer a much clearer path, which fits well with the conservative tendencies on the JSE. That said, if Tesla cracks successful mass adoption of autonomous vehicles or a smart tie-up with SpaceX, GM’s stable story might suddenly look sleepy. For now, GM offers a sensible entry point, especially as the rand remains volatile against the dollar, making US-listed stocks a key part of diversifying exposure. this is just our opinion and not financial advice