Latest News by Industry

GM believes it will stop losing money on electric vehicles in 2025 as higher margin vehicles arrive

GM-Electric Vehicle Profits
ASSOCIATED PRESS

General Motors is losing money on every electric vehicle it sells, but the company says it’s on track to generate mid single-digit pretax profit margins in 2025 as it produces more higher margin EVs, works out kinks in battery manufacturing and sees battery cost reductions

DETROIT (AP) — General Motors is losing money on every electric vehicle it sells, but the company says it's on track to generate mid single-digit pretax profit margins in 2025 as it produces more higher margin EVs, works out kinks in battery manufacturing, and sees battery cost reductions.

Candorium Subscription

That's what Chief Financial Officer Paul Jacobson told analysts at a Barclays conference in New York on Thursday, conceding that the company has struggled to ramp up electric vehicle manufacturing. “While the ramp has been a little bit bumpy, we have worked through that," he said.

The guidance on Thursday of mid single-digit profit margins in two years is a little better than the low-to-mid single digits the company has estimated in the past, Jacobson said. But the new figure includes benefits from U.S. government clean energy tax credits.