Saturday, March 25, 2023
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

Genesis Could be Working on a Small Premium EV for Europe

This model will be inspired by the Mint concept from 2019. The price of raw materials will determine if Genesis can justify making...

BlueOval City: a new complex in the making for Ford’s EV strategy

Ford wants to assemble two million EVs per year by 2026. BlueOval City will have a production capacity of 500,000 EVs by 2025. ...

Lamborghini’s Sant’agta Home Celebrates 60 Years of Raging Bulls

60 years of Lambo production a time to party Plant has expanded significantly, but original remains The Lamborghini factory has just turned 60. That...

The Last of the Seven 2023 Jeep Easter Safari Concepts are the Magneto 3.0 and a Retro Cherokee

The company teased these seven concepts in three batches over the last few weeks. The Magneto 3.0 is a continuation of a series...

One in Three Americans Consider Choosing an EV as their Next Vehicle

A Reuters/Ipsos poll found 34% of car buyers in the US would consider electric vehicles. 56% of participants said they wouldn’t spend more...

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.