General Motors is ready to launch the electric, if it invests $ 35 billion to launch 30 new EVs worldwide in the next three years, which could go.
But the automaker, which will report its first-quarter financial results on Wednesday, is expected to face increasing competition from both automaker and newcomers to the U.S. and internationally. The investment is part of GM’s efforts to keep pace with competitors such as Volkswagen, which is investing $ 100 billion to electrify its portfolio as the world’s largest automaker.
Meanwhile, material shortages and supply chain delays have caused a decline in the automotive business lately, affecting availability and price, and calling into question EVI’s near future. Overall, GM’s U.S. sales fell 20.4% in the first quarter, in line with reports from most major car companies. Almost all of its nameplates have suffered losses due to shortage of supplies and the interests of consumers.
Analysts and TechCrunch will find the key
According to data from Yahoo Finance, analysts expect GM to earn $ 1.68 per share in Q1 2022 over $ 37.33 billion in revenue. GM earned $ 2.06 per share on earnings of $ 32.47 billion a year ago.
GM aims to sell more than 1 million EVs in North America by the end of 2025, but equipment shortages, supply chain problems and consequent slowdown in production could be major obstacles. So we will pay special attention to production run and supply chain forecast updates.
Despite industry-wide uncertainty, GM appears to be in a good position to scale thousands of battery-electric models using its modular Ultium battery platform. By 2027 there could be a partnership with Honda to co-develop, scale and sell electric vehicles.
So far, the initial consumer demand for its latest battery-electric model, a six-figure Hummer EV and a $ 60,000 Cadillac lyric crossover seems encouraging. In March, GM’s luxury brand, Cadillac, said that widespread interest in its first EV increased its production this year to 25,000 units, up from an earlier estimate of 3,200 units.
But competition in the EV segment is expected to intensify globally, especially in China, a key market for GM and most automakers. So we established and startup automakers are similarly keen to hear GM’s thoughts on flooding the market with new nameplate scores.
Battery and EV assembly
GM has consistently invested in expanding its battery cell and EV assembly over the past few years to control its supply chain. Recently, the carmaker said it would invest more than 7 billion in four factories in Michigan, focusing on battery cell and electric truck production, including a third plant with partner LG Energy Solutions. This means we can expect guidance on when those plants will open and whether the timeline is on track.
The automaker has spent $ 2 billion to build its Spring Hill, Tennessee, manufacturing complex – its largest in North America – to create lyrics and other EVs. A $ 2.6 billion cell factory in Lansing, Michigan will follow by the end of 2024. We’ll also hear from GM’s upcoming Ultima battery plant in Lordstown, Ohio for more details.
GM Cruise, its autonomous vehicle subsidiary and BrightDrop, can provide updates on its commercial electric vehicle concerns.
Last month, GM Cruise bought Softbank’s stake in the company for 2.1 billion and invested an additional $ 1.35 billion in the company, bringing its ownership to 80%. GM could share details of the deal and possibly confirm or dispel any rumors that the automaker plans to spin out Cruise to pursue an IPO.
It may be too juicy to share an earnings call, but it’s safe to assume we’ll hear some updates for the cruise. The company launched a limited driverless robotaxi service in San Francisco a few months ago, and we are eagerly awaiting the news that Cruz has received the necessary permission from the California Public Utility Commission to actually start charging for his ride.
Last October, Cruz said it would be in “some of the largest cities in the United States” in the next few years, so GM could also share updates on plans to expand to new cities. Finally, Cruise Origin, the company’s purpose-built AV, may get a mention. Mass production at GM’s Factory Zero assembly plant is set to begin next year, but with the world’s ongoing supply chain problems, who knows?
Meanwhile, BrightDrop recently scored Walmart as a customer with a reservation for 5,000 e-delivery vans. FedEx has also increased van reservations from 500 to 2,000 and may add another 20,000 EVs to that order in the coming years. Walmart expects a combo of the EV600s and smaller EV410s by 2023, so check out the updated guide on BrightDrop’s EV production and delivery dates, as well as other potential commercial customer announcements.