GM remains committed to an electric vehicle future, even as EVs have become a hot political topic on the campaign trail.
Asked if the company was frustrated about electric vehicles being dragged into a political quagmire, GM Chief Financial Officer Paul Jacobson told Yahoo Finance, “I think we’re trying to transcend politics and really make this a consumer choice issue.”
Former President Donald Trump has repeatedly suggested the Biden administration would roll back EV infrastructure investments and a $7,500 tax credit popular with consumers.
Jacobson said GM will continue to invest in battery production and EV manufacturing no matter who wins the White House.
Jacobson added: “We [the $7,500 tax credit is] “This is an important tool for some consumers today, but there are also consumers who don’t qualify or can’t access it for one reason or another, and they’re buying electric vehicles, too.”
Chevrolet’s pure electric concept car FNR-XE is displayed at the SAIC-GM Pan Asia Automotive Technical Center in Shanghai, China, March 25, 2024. (Costfoto/NurPhoto via Getty Images) (NurPhoto via Getty Images)
After years of investment and government support, GM is finally starting to gain momentum in its EV business.
The company said it delivered 22,000 EVs in the second quarter, up 40% from the same period last year, with top-selling vehicles including the all-new Cadillac Lyriq and Chevrolet Blazer electric crossovers.
GM reiterated its goal of producing 200,000 to 250,000 EVs by 2024. It also reaffirmed its goal of achieving “positive variable margins” on its EV division this year.
The company continues to prove to Wall Street that it’s thriving despite the hype of an election year, so its stock price’s 38% increase this year is no surprise.
The automaker said second-quarter sales rose 7.2% from a year ago to $47.9 billion, beating analysts’ expectations of $45.46 billion. The company blamed the success of its Silverado and Sierra pickup trucks and crossovers, such as the Trax.
Adjusted earnings per share were $3.06, up 60.2% from a year ago and well above the market consensus of $2.75.
The stock was up 4.5% at the start of trading.
GM’s second-quarter performance generally outperformed the industry. Overall, new car and truck sales in the second quarter exceeded 4.1 million, up slightly from the same period a year ago, according to Cox Automotive. Sales slowed significantly from the 5% growth rate in the first quarter.
The company again raised its full-year profit forecast. GM now sees full-year adjusted earnings of $9.50 to $10.50 a share, up from its previous forecast of $9 to $10 a share.
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