Thursday, December 1, 2022
News GM Says its EVs will be as Profitable as its Gas-Powered Cars...

GM Says its EVs will be as Profitable as its Gas-Powered Cars by 2025

Increasing market shares and reducing production costs will help GM make its EVs profitable by 2025.

  • The company aims to be making 1 million EVs per year by then.

  • This goal is based on predictions about EV market share and government incentives.

  • GM wants to make all of its vehicles electric by 2035.

General Motors says its North American electric vehicles could become just as profitable as its gasoline-powered models by the middle of the current decade.

Indeed, the automaker believes it will be able to price its EVs in a way that will let it take a margin of 8 to 10% profit per vehicle, as it currently does with its other products.

This will be made possible by the reductions in production costs, sustained government incentives, and a growing EV market share.

According to GM, its Ultium batteries will only cost around $87 per kWh in 2025 and less than $70 per kWh by 2030 due to the construction of four US factories that will be dedicated to their production.

For comparison, the least expensive lithium-ion batteries used in EVs currently cost around $130 per kWh.

In addition to this reduction in production costs, General Motors also believes that the market share for electric vehicles in the United States will grow further than the 17% by 2025 that is predicted by many experts.

In order to meet this demand, the company plans to have five factories building EVs in North America by the middle of the decade, with a total capacity of about 1 million vehicles per year.

This level of output should allow GM to generate over $50 billion in EV-related revenue for 2025 alone.

Government incentives such as tax credits or rebates on electric vehicles are also a part of GM’s plan to make EVs profitable since they allow the automaker to price its vehicles higher while still remaining affordable to the targeted demographic.

Trending Now

Top 20 Vehicles with the Longest Potential Lifespan

New vehicle prices continue to climb out of many consumers' reach. Used vehicle pricing remains high however shopping for something older remains an...

The Lexus CT Could Return as a Small SUV

The hybrid sub-compact hatchback was sold in North America between 2011 and 2017. The new CT could slot between the sub-compact UX and...

Consumer Reports Knocks the Ford Mustang Mach-E Off its Recommended List

Its declining reliability is at fault. Ford’s quality has suffered over the last few years. Not quite two weeks ago, Consumer Reports (CR) released...

Hyundai Announces U.S. Battery Partnership With SK On

Hyundai will get batteries from SK On from 2025 New US EV plant expected to open that year Hyundai has signed a new agreement...

A $50,000 Lucid Electric Sedan Could be Coming in 2025

Lucid recently hinted at a third model to follow the Air and the Gravity. This will likely be a smaller sedan priced around...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.