General Motors plans to tell investors that the company expects its electric-vehicle program to be profitable in 2025, the same year it’s targeting sales of 1 million battery-powered cars, people familiar with the matter told Bloomberg.
CEO Mary Barra will outline a plan at GM’s Nov. 17 investor day to show how the automaker can cover investments for battery plants and assembly, and build the Ultium battery program’s margins.Executives also plan to detail GM’s push to go from selling just about 44,000 EVs this year in the US -- at a loss -- to profitably becoming one of the nation’s biggest EV producers, said the people, who asked not to be named because the presentation hasn’t been made public.
After years of development, GM is signaling it’s finally ready to start producing EVs in enough volume -- with a new battery pack -- to grow sales and start lowering costs. Its push into EVs is expected to get underway in earnest next year when its mass-market Chevrolet brand starts selling a battery-powered Silverado pickup and more-affordable Blazer and Equinox electric crossovers.
GM wants to make a case that it will soon be one of the top players in the industry’s push to replace internal-combustion engines with electric powertrains. At the same time, the road to selling EVs in big numbers and doing it profitably in three years also underscores just how far behind other automakers are when compared to Tesla Inc., which earned $5.5 billion in net income last year selling only EVs.
Barra’s EV push is the biggest piece of the plan GM announced last year to double revenue by 2030 to about $280 billion. The effort relies on growing market share by creating a lineup of electric models that sells in parallel to internal-combustion vehicles. The company will also try to get new revenue from software-related services and its Cruise self-driving vehicle unit.