General Motors Co. is targeting sales of 200,000 to 300,000 electric vehicles in 2024, the company announced in its earnings call Tuesday.
The automaker initially planned to produce up to 400,000 EVs by mid-2024, but earlier this year, it scaled back its production targets to maximize profitability. GM is targeting at least a 60-point operating margin improvement compared to 2023, and a mid-single-digit margin on EVs by 2025.
GM reported retail sales of 16,400 EVs in Q1, reaching a market share of 6.2% in the U.S. During the call, company leaders highlighted new EV launches that include the Equinox EV, GMC Sierra EV, Cadillac Optiq and Escalade IQ, and Silverado EV.
The Chevrolet Equinox EV will arrive at dealers in this quarter, which GM says will be the most affordable long-range EV on the market with a starting price of $34,995 and an EPA-estimated range of 319 miles.
Following the Equinox EV, the Silverado RST electric pickup will launch in the second half of the year and will offer a GM-estimated driving range of up to 440 miles, which is significantly higher than many EVs currently on the market. In comparison, the Tesla Model Y Long Range All Wheel Drive can travel up to 310 miles between charges.
“By optimizing the battery aerodynamics and other systems, we were able to increase the range of the RST and the Denali by 10% to an estimated 440 miles, which is about 40 miles better than the median range of ICE vehicles on the road today,” said GM CEO Mary Barra during the call. “No EV pickup on the road today even comes close and it's possible to go even further.”
GM also reported on Tuesday that its luxury brand Cadillac achieved a 499% year-over-year increase in EV sales due to the popularity of the Lyriq. Sales of the Lyriq were up more than 50% in Q1. The Cadillac EV lineup will expand later this year with the launch of the Optiq and the Escalade IQ.
Barra noted that the increase in Lyriq sales is significant for GM, adding that EV adoption in luxury segments is higher and more resilient than in the broader market.
GM will also relaunch the all-new Bolt EV in late 2025, which will be based on its Ultium platform. It previously was GM’s best-selling EV. The relaunched version will be a competitively priced, high-volume vehicle.
“It's a profitable and capital efficient program that will deliver one of the most affordable electric vehicles around when it arrives in late 2025,” said Barra.
The automaker's upcoming EV launches will coincide with a market that’s growing in the U.S., which could help the company gain market share from rivals like Tesla and Hyundai.
In a report released earlier this month, Cox Automotive predicted that U.S. EV sales will continue to rise year over year in 2024, growing to become the best sales year ever and reaching roughly 10% of the market by year end.
In addition to announcing its EV plans for 2024, GM reported its best Q1 on record with revenues of $43 billion. Strong financial performance in the quarter also led GM to raise its full-year EBIT-adjusted revenue guidance to between $12.5 billion and $14.5 billion — up by half a billion dollars from its previous estimate.
“We are generating strong cash flow, which is funding our EV transformation and growth opportunities,” said GM CFO Paul Jacobson during the call. “These efforts include investing in future products, transitioning manufacturing capacity to EVs, and deploying resources into cutting-edge battery technology.”
GM has been steadily ramping up battery cell production to support its EV production plans and reduce cost through economies of scale. Battery module assembly throughput increased by around 300% over the last two quarters and is expected to increase further this year.
“Since last year, we have significantly reduced cell costs with a large driver being lower battery raw material costs, especially for lithium,” said Jacobson. “We ramped up our first battery JV plant last year, and as they increased production and made other efficiencies, the cost of cells came down significantly.”
GM also updated its battery supply chain to comply with sourcing requirements of the Bipartisan Infrastructure Law to ensure that the Equinox EV will be eligible for the EV tax credit of up to $7,500, which may also help boost its appeal in the market.
