By Sam Boughedda
General Motors (NYSE:GM) said Thursday that it expects its portfolio of electric vehicles in North America to be "solidly profitable" in 2025.
The automotive manufacturing company told investors in a meeting that it is aiming to scale its electric vehicle capacity to more than 1 million units annually, ramp up its software revenue opportunities, generate significant greenhouse gas benefits, and realize the positive impacts of new clean energy tax credits.
"GM's ability to grow EV sales is the payoff for many years of investment in R&D, design, engineering, manufacturing, our supply chain and a new EV customer experience that is designed to be the best in the industry," said GM Chair and CEO Mary Barra.
"Our multi-brand, multi-segment, multi price point EV strategy gives us incredible leverage to grow revenue and market share, and we believe our Ultium Platform and vertical integration will allow us to continuously improve battery performance and costs," added Barra.
General Motors shares have edged slightly higher on Thursday, currently up 0.36%.
The company sees EV adoption approaching 20% of US industry sales in 2025, while it expects to have five assembly plants in the US, Canada and Mexico building EVs.
Overall, General Motors expects revenue to rise at a 12% compound annual rate through 2025, hitting over $225 billion as EV volumes and software revenue increase, while revenue from EVs is expected to be over $50B in 2025. In addition, total capital spending is forecast to be $11 to $13B annually through 2025, while the company expects to maintain its historical EBIT-adjusted margins of 8% to 10% in North America and believes it will earn low- to mid-single-digit EBIT-adjusted margins on its electric vehicle portfolio in 2025, before the impact of clean energy tax credits.