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

GM (GM) just put a $20 billion share buyback on the table and posted Q3 revenue of $50 billion, topping expectations. That combination anchors the bull case in a new analyst comparison that favors GM over Tesla (TSLA).

The contrast is stark on valuation. TSLA trades at a P/E ratio of 351 even as its net income falls. GM, by comparison, is described as consistently profitable and reasonably valued. The analyst's pick: GM is the better buy today, citing profitability, valuation, and the buyback program.

TSLA isn't dismissed. The analyst concedes it offers higher upside potential, but flags significant execution risks. A further wrinkle is uncertainty around a potential merger with SpaceX (SPCX), which adds an unquantified variable to the TSLA thesis.

Interpretation: a $20 billion repurchase authorization signals management sees value in its own shares and gives GM a built-in source of demand. A 351 multiple on shrinking earnings leaves TSLA exposed if growth expectations slip, since the price already assumes execution that the analyst questions.