General Motors has surpassed a significant milestone by becoming "variable profit positive" on its electric vehicles (EVs), indicating it now generates a profit exceeding the costs of production. In 2023, GM reported a net income of $6 billion and doubled its EV market share, capturing around 13% of the U.S. market. This achievement comes as the automaker focuses on reducing material costs, enhancing its battery production, and expanding its EV offerings, particularly with new models slated for release in 2025.
EVs are generally unprofitable for nearly all automakers in their early stages...but EVs are expected to become profitable for automakers over time.
We doubled our EV market share over the course of the year as we scaled production,
GM is now making more money on EVs than the fixed costs involved with making them.
Barra also reiterated that new EV options are coming in 2025 as well, especially to Cadillac.
Collection
[
|
...
]