With the value of its stock down about 36% this year, General Motors (GM 5.26%) announced a share buyback and reinstated the dividend. Investors will get a dividend from GM of $0.09 every quarter, or $0.36 annually, making the stock yield a little under 1%. The corporation is also repurchasing up to $5 billion in shares.

These moves appears to have helped boost its flagging stock price, which has subsequently increased from its 52-week low of $30.33 to almost $40. However, that is below the 52-week high of $67.21. What more could lie ahead of GM? Let's find out.

Aggressive product plan

General Motors' aggressive electric vehicle (EV) plans should keep it at the head of the pack among automakers. Its Ultium EV platform is the heart of GM's EV strategy, underpinning the GMC Hummer EV truck and SUV and the Chevrolet Silverado EV. It's also underneath the Chevrolet Equinox EV and Blazer EV, both due in 2023.

GM recently also cut the price of its Bolt EV by $5,900 and of the larger Bolt electric utility vehicle (EUV) by $6,300, making them the least-expensive EVs in the U.S. market. However, both Bolt models use older versions of GM's EV technology.

Cadillac has also entered the EV market with the 2023 Lyriq EV, with ordering now open. It will be followed by Cadillac's flagship EV, the Celestiq, at a later, unspecified date. Not to be left behind, Buick will bring its first EV to North America in 2024 under the revived Electra name. 

In all, GM intends to sell 30 electrified car models globally, with volume of more than 1 million units, by 2025, the result of a $35 billion investment. 

GM's dedication to a pure EV strategy contrasts with its rivals, particularly Ford Motor (F 0.35%), which is taking a multi-pronged approach to electrification by fielding traditional hybrids, plug-in hybrids, and all-electric vehicles. Ford offers the all-electric Mustang Mach-E, F-150 Lightning, and E-Transit Van, as well as the Ford Maverick and Escape hybrids, making it less of a pure-EV play. Through 2026, Ford will invest $50 billion on electric vehicles and is separating its EV unit from its heritage combustion engine company. 

GM's product plan seems superior, transforming into a pure EV company with more EVs than its competitors as it strives to be seen as a player alongside Tesla (TSLA 2.26%) and Rivian (RIVN 4.49%), which are both pure EV plays. And like those two, it is investing heavily into self-driving technology, offering Super Cruise, its autonomous driving technology, on 22 models by 2023. 

Tesla's Autopilot autonomous driving system is its chief competitor, although it is the subject of dozens of probes by the National Highway Traffic Safety Administration. Ford offers a partial self-driving system, BlueCruise, which isn't as refined as that of its competitors. 

GM also announced that its partnership with Cruise, an autonomous vehicle company 80% owned by GM, will be the first businesses in the world to operate a commercial self-driving taxi service in a major city, in this case, San Francisco. By 2027, GM wants its Cruise vehicles to generate $50 billion in sales. 

Battery strategy and headwinds

GM's battery strategy differs from most of its competitors, save Tesla, for its vertical integration.

Rather than outsourcing it, as Ford and others do, Ultium Cells LLC, a joint venture between GM and LG Energy Solutions, is planning to build four battery plants in Ohio, Tennessee, Michigan, and Indiana thanks to $2.5 billion in loans from the U.S. Department of Energy to help finance their construction. This should help GM EVs meet the local sourcing rule required to meet the government's revised federal tax credit policy.

Of course, these plans aren't without their headwinds. Continuing supply chain disruptions, persistent inflation, and rising U.S. interest rates all pose a threat to GM's profitability. Higher prices in 2021 more than made up for the financial blow of lower sales volume. But consumers may find it increasingly difficult to continue making higher payments as interest rates rise.

So far, car buyers are willing to pay more, as average transaction prices reached record levels each month. How long this trend will continue remains an open question and a possible threat to future profitability. For investors, watching GM's progress in increasing EV production, as well as consumer acceptance of higher prices, is key to making this automaker a profitable play.