GM

Company wants to sell one million electrified vehicles

In the first quarter of this year, General Motors Corporation delivered no more than 457 electric vehicles to the market, although it had 65,000 pre-orders just for the supply of Hummer EV pickup trucks. To reach the annual production of at least 1 million electric vehicles by the middle of the decade, the company will have to make a lot of efforts.

GM CFO Paul Jacobson spoke to analysts and investors at a conference in New York this week, updating their minds on the company's EV plans. By the middle of the decade, the corporation will sell up to 1 million electric vehicles annually in the United States. In the next two years, the increase in production volumes will be carried out very quickly. Formally, the company now supplies customers with not only Chevrolet Bolt EV and EUV, but also Hummer EV, as well as Cadillac Lyriq luxury crossovers. Next year they will be joined by the Chevrolet Silverado EV pickup and the Chevrolet Equinox crossover.

Last year, GM managed to sell 25,000 electric vehicles, mostly Chevrolet Bolts. To increase sales by forty times by 2025, you will have to work hard. In total, GM delivered about 2.6 million vehicles to the North American market last year, where its share ranges from 14 to 16%. If it is ready to deliver one million electric vehicles to the local market by 2025, it will either have to increase its share to 40% of its own product line or increase its overall US market share.

Experts expect Tesla to sell 3.6 million electric vehicles annually worldwide by 2025. If a third of that drops in North America, GM will have to catch up with Tesla in terms of business scale. It will be beneficial for the company in any way to achieve the goal. This year, it expects to generate operating income of $14 billion. By 2030, it plans to increase that number to $36 billion, more than doubling. For that, the company's profits will have to increase 13% a year until the end of the decade. Over the past eight years, by comparison, Apple has only managed to increase operating income by 10% on average each year. If GM can prove its worth as part of the electrification plan, its stock could become a very attractive object of investment. 

Image source: GM