GM’s share of the US electrical automobile market doubled within the fourth quarter as the brand new Chevy Equinox EV grew to become a high vendor. With new electrical Cadillac SUVs arriving this yr, GM sees extra progress alternatives in 2025. In the meantime, it should probably face just a few headwinds. Right here’s what to anticipate.
GM’s EV gross sales climb in 2024, pushed by new Equinox
After releasing This fall 2024 earnings on Tuesday, GM claimed to be the “fastest-growing excessive quantity EV producer” within the US.
GM’s share of the electrical automobile market doubled over the yr because it scaled up manufacturing of recent fashions. By the second half of 2024, GM had surpassed Ford to turn into the second-largest vendor of EVs within the US behind Tesla.
New fashions, like the electrical Chevy Equinox and Blazer, contributed to GM’s larger EV gross sales. With gross sales surging 85% in This fall, the brand new electrical Chevy Equinox was among the many high 5 best-selling EVs within the US.
Different electrical automobiles, together with the Cadillac Lyriq and GMC Hummer EV, had their finest gross sales quarters since launching.
With plans to supply “EVs for everybody,” GM now affords fashions throughout practically each section “at a number of value factors,” together with lower-cost (Chevy Equinox EV), luxurious (Cadillac Lyriq), pickup vans (Chevy Silverado EV, GMC Sierra EV Denali), and extra.
Though GM doesn’t present a separate breakdown for electrical automobiles, the corporate did say it achieved a constructive variable revenue within the fourth quarter.
GM This fall 2024 earnings and financials
CFO Paul Jacobson instructed reporters (through Reuters) that GM barely missed its purpose of manufacturing 200,000 EVs in North America, ending 2024 at 189,000 items wholesale. Nonetheless, it did handle to scale back EV stock from 100 days in Q3 to 70 days within the fourth quarter of 2024.
The corporate expects EV working losses to enhance by about $2 billion, the decrease finish of its $2 billion to $4 billion goal. That’s primarily based on its EV wholesale estimate of round 300,000 items.
GM stated common transaction costs throughout all automobiles had been over $50,000 “with incentives beneath the business common.”
GM posted fourth-quarter income of $47.7 billion, up 11% yr over yr. Nonetheless, the corporate reported a internet lack of $3 billion on account of its restructuring in China. GM stated This fall internet earnings was diminished by over $5 billion in particular fees, together with $4 billion for the restructuring in China and $500 million to halt its Cruise robotaxi enterprise.
Regardless of the loss, GM expects losses to slim in 2025 with bettering EV profitability, a revamped China enterprise, and its resolution to finish Cruise.
New electrical Cadillacs, just like the Escalade IQ, Optiq, and Vistiq, the luxurious model, will provide an an EV in each section.
GM bought 114,432 electrical automobiles in 2024, outpacing Ford, which bought 97,865 EVs final yr. Within the fourth quarter, GM’s share of the US EV market reached 12.5%, up from 6.5% in Q1 2024.
Electrek’s Take
Regardless of the optimism, GM might face some main headwinds this yr. With Trump threatening to finish federal EV subsidies and funding for US battery manufacturing, GM might be probably the most closely impacted with important investments.
As well as, Trump is now threatening to impose new tariffs on imports from key US commerce companions, together with Mexico and Canada, the place GM has a number of manufacturing vegetation.
GM has already begun shifting stock from Mexico and Canada. Will or not it’s sufficient to keep up progress in 2025?
The automaker acknowledged that “there’s uncertainty over commerce, tax, and environmental laws” that aren’t factored into its steerage.
