General Motors expects its electric vehicles to be profitable by 2025, with recently approved subsidies in the United States closing the profitability gap between electric vehicles and the combustion fleet, Chief Executive Mary Barra said on Thursday.
Barra did not specify what the profit margins for electric vehicles would be as he began a presentation to investors in New York.
GM shares trade at 6.5 times earnings, just slightly ahead of Ford’s multiple. Electric vehicle leader Tesla is trading at nearly 60 times its earnings, even as its share price has fallen 47% this year.
GM’s pickup trucks and SUVs with internal combustion engines—called “ICE” by industry executives—have double-digit profit margins.
GM is also ramping up production of electric vehicles in China. By 2025, Barra said, GM could produce up to 2 million electric vehicles globally.
GM’s profitability lagged behind Tesla, which reported 17% Ebitda in the third quarter.
GM trails Tesla, Ford and Hyundai in EV sales in the US this year. The company plans to ramp up production in North America and China from 2023 to 2025. From 2022 through the first half of 2024, GM said it will build 400,000 vehicles for North America – a slower schedule than previously anticipated. .
Source: CNN Brasil
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