General Motors GM took over Ford Motor Co. F as the second biggest EV seller in the U.S. after Tesla Inc. in the third quarter and the company is optimistic about its EV portfolio going forward.
What Happened: GM CEO Mary Barra said on Tuesday during the company’s third-quarter earnings call that it has been conducting “extensive dealer outreach and training” to drive EV sales.
“For example, Chevrolet has been meeting with more than 7,000 dealership sales employees to educate them about EV technology and charging and the competitive advantages we have in areas like affordability, range, capability, and the total cost of ownership,” Barra said.
The company also informed that at the end of the quarter, dealer inventory level was at 68 days for combustion engine vehicles and 10 to 12 for EVs.
“We are on track to produce and wholesale approximately 200,000 EVs this year and reach variable profit positive in Q4. Our EV momentum is growing,” company CFO Paul A Jacobson said.
“We continue to invest in the business and create products our customers love and are willing to pay for as this is fundamental to our success. While at the same time, we’re finding efficiencies and opportunities to make the business more profitable.”
In the third quarter, GM delivered about 8 EV models in the U.S., and its Cadillac Lyriq, one of the pricier offerings, was among the top three bestsellers.
Barra on Tuesday noted that the EV considering is “much stronger among luxury customers than the mainstream market.”
“These customers want beautiful designs, advanced technology, performance, and range, everything Cadillac delivers with the LYRIQ, OPTIQ, VISTIQ, and the Escalade IQ,” Barra said on Tuesday.
Why It Matters: GM sold 32,095 EVs in the three months through the end of September in the U.S., with the Chevrolet Equinox EV accounting for a majority of the deliveries.
GM currently has the longest EV lineup in the U.S. among major players including EV giant Tesla.
Tesla's current lineup has just five vehicles- Model 3, Model Y, Model S, Model X, and the Cybertruck.
Dearborn-based Ford, meanwhile, has only three EV offerings in the U.S. – the Mustang Mach-E SUV, the F-150 Lightning pickup truck, and the E-transit van.
For the third quarter, GM reported better-than-expected third-quarter results.
GM’s quarterly adjusted earnings per share of $2.96 beat the street view of $2.43. Quarterly sales of $48.757 billion also beat the analyst consensus estimate of $44.585 billion.
The company also raised 2024 adjusted EPS guidance from $9.50 – $10.50 to $10.00 – $10.50.
Price Action: GM’s stock surged 9.8% on Tuesday to close at $53.73, but edged slightly lower by 0.04% in premarket trading. Year-to-date, GM’s shares are up 49%, according to Benzinga Pro data.
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Photo courtesy: GM
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