GM claims its next cycle of EV growth is coming, but when?

After beating top and bottom line estimates in the second quarter, General Motors (GM) raised FY guidance for 2024. With “encouraging” early sales results in Q2, GM is preparing “to unleash the next cycle of EV growth.” This includes scaling Chevy Equinox EV production while launching new GMC and Cadillac EVs.

GM raised 2024 guidance for the second time this year after posting record Q2 revenue and North American profits.

GM’s revenue rose 7.2% to nearly $48 million, a new Q2 record. Wall Street expected around $45 billion. Net income also surged 14% to $2.9 billion. GM said stronger pickup and SUV sales in North America fueled the earnings growth.

Although GM’s higher-margin ICE models led to record Q2 profits, the company said it’s ready to “unleash the next cycle of EV growth.”

To do so, GM is scaling production of the Chevy Equinox EV. GM calls the electric SUV a “game changer” with over 300 miles range, a tech-loaded interior, and an affordable starting price.

“Chevy seems positioned to grab a piece of the pie that no one else has quite grabbed onto yet,” a product reviewer said about the new all-electric Equinox.

GM claims the Equinox is the “most affordable” EV with over 315 miles range. Although the cheapest model (2LT FWD) starts at $41,900, an even more affordable 1LT FWD model will be available later this year, starting at $34,995. All models qualify for the $7,500 EV tax credit.

GM ready for next EV growth phase after record Q2

“We’re encouraged by the early sales results,” GM said, after delivering nearly 22,000 EVs in the second quarter, up 34% from Q1 and a new Q2 record.

GM sold over 1,000 Chevy Equinox EV models in the second quarter after deliveries kicked off in May. Meanwhile, the brand sold 6,634 Blazer EVs, another Chevy electric SUV rolling out. With the Silverado EV also hitting the market, Chevy looks to make up for the Bolt EV, which is being phased out.

Chevy will introduce the next-gen Bolt EV next year. When it arrives in 2025, GM claims it will be the most affordable EV on the market.

Over the next few months, GM will bolster its lineup with new EVs, including the GMC Sierra EV and Cadillac OPTIQ, Escalade IQ, and CELESTIQ models launching.

GM reaffirmed its goal of achieving positive variable profits from its EVs in Q4. Despite the strong lineup, the company is “committed to disciplined volume growth,” which is key to hitting its target, according to GM.

Struggles continue

To simplify autonomous vehicle tech, GM’s Cruise team will focus on the next-gen Chevy Bolt EV instead of the Origin.

GM scaled back its EV production target for 2024 earlier this year, citing lower-than-expected demand. The company expects to build 200,000 to 250,000 EVs this year, down from as much as 300,000.

The American automaker is struggling in China amid fierce EV competition. “In China, we’ve been taking steps to reduce our inventories, align production to demand, and reduce our fixed costs,” CFO Paul Jacobson told the media on Tuesday.

However, “it’s clear that the steps that we’ve taken, while significant, have not been enough,” he added.

GM’s losses in China reached $104 million, up from a $78 million profit last year. “We’ve seen some significant share erosion, and it’s intensely price-competitive. That means we’ve got work to do,” Jacobson explained.

CEO Mary Barra said the company is delaying its electric truck plant in Michigan until mid-2026. GM also announced it will push back Buick’s first EV launch.

GM claims the next EV growth phase is coming, but when exactly will that happen? We will see over the next few months as new electric models roll out from Chevy, Cadillac, and GMC.

Source: Automotive News, GM