Two General Motors stock classes would better serve investors, Greenlight Capital’s David Einhorn told CNBC on Tuesday.

Einhorn, making comments after the hedge fund urged General Motors to split its common stock into two classes, said GM’s stock is confronting a very unusual dynamic.

“It trades below its multiple in the S&P 500. The PE is less than six. The payout, the dividend yield, which is more than 4 percent … puts it among the highest. And further, they’re only paying out about a quarter of their earnings,” Einhorn said on “Halftime Report.”

Greenlight Capital, which owns 0.88 percent of GM shares, a stake worth $457 million, said GM’s switching to two stock classes would help the U.S. automaker improve its financial flexibility and boost the stock’s value.

“I would compare it to an ice cream stand that just serves chocolate and vanilla swirl ice cream,” Einhorn said. “If you gave investors more choice, some people like chocolate. Some like vanilla. Some like swirl.”

The U.S. automaker rejected Greenlight’s proposal Tuesday, saying the proposal relates to eliminating dividend on existing GM common stock and distributing unprecedented new dividend-focused security.

“As Greenlight has already acknowledged, the proposed dual-class common stock structure would have no positive effect on GM’s underlying business or cash flows, and therefore would not create additional intrinsic value,” GM said in a statement.

“The proposed dividend security would not help GM sell more cars, drive higher profitability, or generate greater cash flow – nor would it address the fundamental sector factors affecting GM’s stock price.”

Brian Johnson, a senior autos analyst at Barclays, said on “Power Lunch” on Tuesday that the proposed stock rearrangement only brought attention to the fact that GM and Ford are priced too low.

“I think it really highlights… [that] GM and Ford as well are undervalued on their dividend payment potential,” Johnson told CNBC.

—CNBC’s Mack Hogan and Reuters contributed to this report.