General Motors Projects Stable Earnings and Focuses on EV Growth for 2025

Published on: Oct 12, 2024Last updated on: Oct 12, 2024
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General Motors Co. (NYSE: GM) anticipates its adjusted earnings for 2025 will largely parallel its results for 2024, with the company targeting adjusted earnings before interest and taxes (EBIT) in the range of $13 billion to $15 billion. This announcement was made by GM's Chief Financial Officer, Paul Jacobson, who outlined the automaker's strategic focus on enhancing earnings from its electric vehicle (EV) segment by $2 billion to $4 billion.

Jacobson emphasized improvements in EBIT margins across new vehicle models as a key component of GM's strategy, while ensuring steady capital expenditures between $10.5 billion and $11.5 billion. The company also reiterated its plan to produce about 200,000 EV units in North America in 2024, underscoring its commitment to growing its presence in the electric vehicle market.

Despite various challenges confronting the automotive industry, GM's stock has shown resilience, with shares experiencing a notable rise of 28% in 2024. As of the latest data, GM's stock price stands at approximately $47.82 per share, reflecting investor confidence in the company's strategic direction and growth prospects in the EV segment.

General Motors' commitment to the EV market aligns with broader industry trends towards sustainable and environmentally friendly transportation. The focus on increasing EV earnings and maintaining consistent capital investment suggests a strong strategic alignment with future auto industry shifts.

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