General Motors chair and CEO Mary Barra served up a big message to investors on Wednesday.

Shares of the auto giant are undervalued amid a future of profitable EVs rolling out of manufacturing plants, and it's a time to buy ... just like GM is about to do.

The automaker today uncorked a new $10 billion stock buyback plan, and tacked on a 33% dividend increase.

GM shares popped nearly 10% on the session.

"It's demonstrating our confidence in our strategy and ability to grow, generate cash flow as well as strong margins," Barra said of the maneuvers on Yahoo Finance Live (video above).

Barra reiterated a plan for GM to hit a low-single-digit profit margin on EV operations by the end of 2025, and be mostly producing electric vehicles by 2035.

"I personally am not happy where the share price is," Barra added.

Prior to today's announcement, GM shares had been down about 20% in the past year, compared to a 15% gain for the S&P 500 (^GSPC).

Investors have fretted on several aspects of the GM investment thesis this year. Concerns have ranged from slowing demand for EVs and higher interest rates plaguing the overall outlook for auto purchases to rising costs under the new deal with the United Auto Workers (UAW) union.

Under the new UAW contract, wages are poised to increase by 25%. GM said today it will deliver some cost savings to help offset the higher labor costs.

In the meantime, the company is taking a more cautious view on 2023 profits.

The company forecast 2023 net earnings of $9.1 billion to $9.3 billion, down from $9.3 billion to $10.7 billion previously.

"Net-net, today's update should address UAW-related uncertainty and lift investor confidence on the back of the accelerated buyback and 2024 commentary," said Citi analyst Itay Michaeli in a client note.

Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email [email protected].

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