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.