GM to Assure Investors: EV Profits Closer Than Expected

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General Motors (GM) is preparing to address investor concerns about slowing electric vehicle (EV) sales and declining profits at its upcoming investor day. The message will shift from ambitious growth projections to a focus on stability and near-term profitability.

Addressing Investor Concerns: GM will emphasize that the EV market slowdown is not a reason to panic and that they can maintain healthy profits in 2025.

Shifting Focus: The presentation will prioritize reassuring shareholders about near-term financial performance rather than aggressive long-term expansion plans.

ICE Profits Still Strong: GM will highlight the launch of new gas-powered SUV models to demonstrate continued profitability in traditional vehicles.

No Stock Buyback Increase: GM won’t announce any stock buyback or dividend increases during the investor day.

Falling Stock Price: Despite strong recent earnings reports, GM’s stock price has fallen due to overall market anxiety and worries about EVs becoming a money pit.

Unsustainable EV Investment: Shareholders are concerned about the high costs associated with EV development and the lack of a clear path to profitability.

Chinese Competition: The growing threat from Chinese automakers like BYD is adding pressure on GM’s market share.

Cruise Uncertainty: The 2023 pedestrian accident involving a Cruise robotaxi has clouded the future of GM’s self-driving car unit.

China Struggles: GM’s historically profitable Chinese operations require restructuring due to unsustainable business practices.

EV Cost Reduction: Investors are anxious for details on GM’s plans to reduce production costs and compete with Tesla and Chinese EV makers.

Ultium Cells Technology: The investor day will showcase GM’s battery technology and its potential to improve EV performance and affordability.

Overall, GM will focus on managing expectations and reassuring investors that their EV investments will eventually lead to profitability. They’ll also emphasize the continued importance of gas-powered vehicles in their bottom line.