For automakers, one of the biggest challenges to the widespread adoption of EVs is profitability. Fortunately, as GM Authority reported earlier this week, GM expects that its electric-powered vehicles will be profitable as soon as 2025.
As evidence to back up its claim, GM points to several key developments:
- Multiple entries in pickup, SUV and luxury segments, which themselves represent about 70 percent of EV industry volume. In the near future, GM will field eight of these EVs:
- New digital retail platform
- Five North American GM assembly plants tooled for EV production
- BrightDrop is on track to reach $1 billion in revenue in 2023
- Securing necessary materials for Ultium battery production
“GM’s ability to grow EV sales is the payoff for many years of investment in R&D, design, engineering, manufacturing, our supply chain and a new EV customer experience that is designed to be the best in the industry,” said GM Chair and CEO Mary Barra. “Our multi-brand, multi-segment, multi price point EV strategy gives us incredible leverage to grow revenue and market share, and we believe our Ultium Platform and vertical integration will allow us to continuously improve battery performance and costs.”
To compliment this anticipated increase in electric vehicle output, GM executive vice president and chief financial officer Paul Jacobson pointed to increase profits and revenue. In fact, company revenue is now expected to reach $225 billion as EV volume and software revenue grows. Revenue from EVs themselves is expected to grow to more than $50 billion by 2025.
“We’ve built the foundation to rapidly scale our EV portfolio, make it profitable and maintain strong margins during a period of high investment,” said Jacobson. “Our Ultium Platform and battery technology will only get better and less expensive over time.” To that extent, GM is planning to reduce battery cell costs to under $70/kWh by mid- to late-decade, in its next generation of Ultium battery tech.
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Comments
This expectation comes from the company that has written the book on dampened expectations.
Buick City… Things change all the time in the business world…GM is talking by 2025, but who knows what the world will be like by 2030 or 2035… Concept cars are built and shown all the time plenty of car companies don’t build the concept car… Toyota is a great example of this they keep showing another Celica or better looking Prius that really looks like the old Prius only smoothed over.
That’s really hard to believe given the huge investments that are making, let’s see the math.
GM is not delivering any electric cars on time. Look at the Lyriq. Ordered one still haven’t heard a thing. My daughter ordered one of the first addition and all see keeps hearing is another delay. GM can’t deliver anything. Went to look at a Traverse the dealer had 3 all black he could not tell when he would get any more. As a stock holder they are spending more and delivering less
Liars and thieves.
I’m betting the house that by 2025 Bidens woke EV Charging station infrastructure will still be “invisible” to most of us, despite the recent $750,000,000,000 “Inflation Reduction” Act, passed with ZERO Republican votes, throwing Billions down the rat hole expecting a vibrant EV charging network to handle the “predicted” EV volume. Fat chance.
MossmanMike… Your only talking two years away by 2025 to rebuild the ENTIRE ELECTRIC INFRASTRUCTURE… it’s not going to happen… Maybe maybe by 2030 but not in two years. Also given the fact that GM themselves aren’t going to be pure EVs and still sell ICE until 2035 or later should tell WOKE generation something… but like P. T. Barium said there is a sucker born every day!