Short Hills Capital’s Steve Weiss recently sold his General Motors Co (NYSE:GM) stock and bought Volkswagen AG (OTC:VWAGY) instead, he said Tuesday on CNBC’s “Fast Money Halftime Report.”
Weiss told CNBC he saw an opportunity to get out of General Motors and use the cash to add to his Volkswagen position when the stock traded down near the $30 level last week.
Volkswagen is about two multiples cheaper than General Motors, Weiss said, adding the company is growing faster than General Motors and provides investors with a dividend yield of 1.8%.
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The most important factor that led to the stock swap is Volkswagen’s commitment to electric vehicles, he said.
“Most Importantly, they had committed $50 billion to EVs way before GM, Ford Motor Co (NYSE:F) and anybody else.”
Volkswagen will be the leading electric vehicle seller in the world by the end of 2021 or 2022, Weiss said.
He described the company’s electric vehicle models as “excellent” and said Volkswagen’s entire lineup will be electric “way before” the rest of the competition.
GM, VWAGY Price Action: General Motors stock lost 0.73% Tuesday, closing at $52.85, while Volkswagen stock was down 1.25% at $31.72.
Photo: Stan Petersen from Pixabay.
