GM

General Motors (GM)

Once the largest automotive manufacturer in the world, General Motors (GM) today remains the largest U.S. carmaker, producing more than 8.3 million cars and trucks annually. The company traces its roots back to the Durant-Dort Carriage Company, which was the country’s leading manufacturer of horse-drawn vehicles by 1904, when it merged with the Buick Motor Company to take on the then-new market for gas-powered vehicles. By 1962, more than half of all cars sold in the U.S. were produced by General Motors.

Today the company, headquartered in Detroit, designs, manufactures, markets, and distributes vehicles and vehicle parts, in addition to financial services. It has facilities in 37 countries and owns brands including Chevrolet, Buick, GMC and Cadillac, as well as overseas brands such as Holden, Wuling, Baojun and Jiefang.

GM’s worldwide sales volume reached 10 million vehicles in 2016 and the company reported $147 billion in revenue in 2018.

Rationale

A direct way to gain exposure to General Motors is to buy the listed shares. But that can be a risky approach, given GM’s bumpy business history and the current state of the U.S. auto industry as a whole. GM famously declared bankruptcy in 2009 following years of declining sales and was later bailed out by the government in 2014 through the Troubled Asset Relief Program.

A solution that can dampen some of that volatility is to buy funds that provide exposure to General Motors and other similar firms, rather than GM shares themselves. After all, the return drivers that will benefit GM might also benefit other similar firms in automotive, manufacturing, and financial services. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like GM through these types of funds.

Investing in GM 

A search on Magnifi suggests that investors can gain access to GM via a number of different funds and ETFs, including those shown below.  

Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.

This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.


Tesla (TSLA)

Few companies capture the spirit of innovation as it exists today as Tesla (TSLA), the California-based maker of electric cars, advanced battery systems, solar panels and other world-changing inventions. Founded in 2003 by engineers Martin Eberhard and Marc Tarpenning, Tesla was soon thereafter joined by current CEO Elon Musk, who invested in the company’s Series A round.

And the rest is history.

As of 2019, Tesla is producing three models of its all-electric vehicles — the Model S liftback sedan, the Model X SUV, and the Model 3 affordable sedan — and has new versions in development including the Model 3 crossover SUV, Roadster sports car and the Semi battery powered Class 8 semi-trailer truck. The company also produces solar panels and solar roof tiles via its SolarCity subsidiary, as well as whole-home rechargeable lithium ion battery systems the Powerwall and Powerpack and the Megapack, a Lithium-ion grid energy storage battery.

As of 2018, Telsa controlled 12% of the global market for plug-in electric passenger cars, with more than 245,000 vehicles delivered, making it the world’s best selling builder in its category.

Rationale

A direct way to gain exposure to Tesla is to buy the listed shares. However, this can be a volatile approach, given the company’s early stage and ongoing growing pains. A solution that can dampen some of that volatility is to buy funds that provide exposure to Tesla and other similar firms, rather than TSLA shares themselves. After all, the return drivers that will benefit Tesla might also benefit other similar firms in their industry, including those making electric vehicles as well as components and infrastructure for the industry. 

As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Tesla through these types of funds.

Investing in TSLA

A search on Magnifi suggests that investors can gain access to Tesla via a number of different funds and ETFs, including those shown below. 

Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.

This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.