General Motors (GM) has officially taken the number two spot in the US electric vehicle (EV) market, surpassing Ford Motor Co. (F) and trailing only Tesla Inc. This strategic move reflects GM’s strong commitment to its EV portfolio and its optimistic outlook for the future.
During the company’s third-quarter earnings call, GM CEO Mary Barra highlighted the company’s intensive efforts in dealer outreach and training. She emphasized that Chevrolet has been engaging with over 7,000 dealership sales employees to educate them about EV technology, charging infrastructure, and the competitive advantages GM holds in areas like affordability, range, capability, and total cost of ownership.
The company further revealed that at the end of the third quarter, dealer inventory levels stood at 68 days for combustion engine vehicles, compared to just 10 to 12 days for EVs. This indicates a strong demand for GM’s EVs and the company’s commitment to meeting that demand.
GM’s CFO, Paul A Jacobson, also shared positive news regarding the financial performance of the EV division. He stated, “We are on track to produce and wholesale approximately 200,000 EVs this year and reach variable profit positive in Q4. Our EV momentum is growing. We continue to invest in the business and create products our customers love and are willing to pay for as this is fundamental to our success. While at the same time, we’re finding efficiencies and opportunities to make the business more profitable.”
In the third quarter, GM delivered eight EV models in the US, with the Chevrolet Equinox EV leading in sales. Notably, the Cadillac Lyriq, one of GM’s premium EV offerings, ranked among the top three bestsellers, demonstrating strong demand for luxury EVs. Barra pointed out that EV consideration is “much stronger among luxury customers than the mainstream market.” She emphasized Cadillac’s commitment to delivering “beautiful designs, advanced technology, performance, and range, everything Cadillac delivers with the LYRIQ, OPTIQ, VISTIQ, and the Escalade IQ.”
GM’s strong performance in the EV market positions it as a major player in the rapidly growing EV landscape. The company’s long EV lineup, encompassing eight models, surpasses those of major players including EV giant Tesla, whose lineup currently comprises just five vehicles, and Ford, which offers only three EVs in the US market.
GM’s third-quarter financial results exceeded analyst expectations, further solidifying its positive momentum. The company reported adjusted earnings per share of $2.96, beating the street view of $2.43, and quarterly sales of $48.757 billion, surpassing the analyst consensus estimate of $44.585 billion. GM also raised its 2024 adjusted EPS guidance from $9.50 – $10.50 to $10.00 – $10.50.
In response to the positive news, GM’s stock surged 9.8% on Tuesday, closing at $53.73. While it edged slightly lower by 0.04% in premarket trading, the stock’s year-to-date performance remains strong, with a 49% increase.
GM’s commitment to its EV strategy and its strong financial performance indicate a bright future for the company in the rapidly evolving automotive industry. As the EV market continues to expand, GM is well-positioned to capture a significant share of this growing market.
