General Motors (GM) is adjusting its expected sales and production of all-electric vehicles for the year 2024. This change comes as U.S. adoption of EVs is happening at a slower pace than initially anticipated. GM Chief Financial Officer Paul Jacobson recently stated that the company now expects to produce between 200,000 to 250,000 EVs this year, a decrease from the previously announced range of 200,000 to 300,000 vehicles.
Despite this adjustment, GM remains optimistic about the future of EVs, with Jacobson highlighting that the company expects EVs to account for 8% of U.S. sales industry-wide in 2024. While this estimate is lower than some projections, GM is confident that its EVs will become profitable once production reaches 200,000 units, which is expected by the end of the fourth quarter.
In addition to adjusting its EV production targets, GM is also making significant investments in new electric vehicle models. The company recently launched the Chevrolet Equinox EV, an entry-level electric SUV priced at around $35,000 before incentives. GM has also reintroduced the Chevrolet Blazer EV, both of which are built on the company’s “Ultium” EV platform.
Furthermore, GM is focused on improving its overall financial performance, with Jacobson stating that second-quarter earnings are expected to surpass the results of the first quarter. The automaker is also investing $850 million in its Cruise autonomous vehicle unit to bolster operational capabilities. Additionally, GM’s board has approved a new $6 billion stock repurchase authorization, supported by sales of its traditional gas-powered vehicles.
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