General Motors (GM) had plans to catch up to Tesla in electric vehicle (EV) sales by 2025, but challenges with production, software, and supply chains have left them behind. GM’s EV sales momentum is building thanks to an expanding lineup of all-electric vehicles, with sales increasing by about 70% compared to a year earlier. They currently offer eight “Ultium-based” EVs, with plans for more, and GM is predicting a strong finish to the year in terms of EV adoption.
While GM remains behind Tesla, Hyundai/Kia, and Ford in EV sales, the company is optimistic about its potential to overtake its competitors. The pressure to sell their EVs is high, as GM has invested billions of dollars in developing these vehicles. Despite EVs being less profitable than gas-powered models, GM expects EVs to become profitable on a production basis once output reaches 200,000 units by the fourth quarter.
Under CEO Mary Barra, GM’s focus has shifted towards EVs, with a target to exclusively offer all-electric vehicles by 2035. While some previously announced targets for 2025 have been withdrawn or adjusted, GM remains committed to producing between 200,000 and 250,000 EVs this year. The company will continue to be guided by customer demand for EVs, with plans to adjust production accordingly to meet this demand. EVs are expected to make up roughly 10% of overall U.S. vehicle sales by the end of the year, with GM positioning itself to capitalize on this growing market.
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