General Motors has made significant strides in its electric vehicle (EV) business, reporting a "variable profit positive" status in 2024, indicating profits exceeding manufacturing costs. While GM plans to build 300,000 EVs this year, it still faces the challenge of high costs related to manufacturing and assembly lines. As industry competitors like Ford incur heavy losses, this milestone marks an important moment for GM. Despite the positive results, investor concerns regarding potential impacts from the new administration led to a decline in GM's shares by over 10%.
GM reported its EVs were "variable profit positive" in 2024, meaning they earned more than GM spent on manufacturing costs.
Despite achieving variable profit from EVs, GM faces other high costs that need to be addressed for overall EV profitability.
The automotive industry continues to struggle with a rapid change towards electric vehicles amidst profitability challenges and concerns regarding the new administration.
Industry competitors like Ford are still reporting significant losses in their EV divisions, highlighting GM's milestone as particularly noteworthy.
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