General Motors (GM) has defied concerns about the electric vehicle (EV) market by reporting stronger-than-expected earnings in the fourth quarter of 2023. The company’s CEO, Mary Barra, emphasized the importance of a ‘level playing field’ following comments made by Tesla CEO Elon Musk about Chinese EVs.
GM’s earnings call highlighted the company’s focus on EVs, with Barra confirming that the ‘majority of [GM’s] capital spend’ is on electric vehicles. Despite challenges in the EV market, including slowing demand and potential competition from Chinese automakers, GM remains optimistic about its EV sales in 2024.
Barra projected that EVs will account for 10% of all auto sales in 2024, up from 7% in 2023, and anticipates selling between 200,000 and 300,000 EVs in 2024. This outlook contrasts with the prevailing industry sentiment.
Addressing Elon Musk’s remarks about ultracheap Chinese EVs disrupting the market, Barra emphasized the need for a ‘level playing field’ and highlighted the importance of competitively priced, well-designed vehicles. She refrained from endorsing specific policies but emphasized the need for fair competition.
GM’s strong earnings report and Barra’s comments reflect the company’s determination to navigate the evolving landscape of the EV market and compete effectively against both traditional and emerging players.
