Both GM's And Worksport's Game Plans Are On Track

While Tesla Inc TSLA continues to rule the EV kingdom and raise the bar, General Motors GM reported its second quarter results, with both revenue and earnings soaring as well as topping Wall Street estimates. The automaker has also boosted its profit guidance for the second time, pleasing investors with its profit and the fact its EV game plan is on track.

Also today, tonneau cover maker Worksport Ltd WKSP revealed It received a substantial purchase order for its advanced hard-folding tonneau covers, on top of its recently reported order of $720,000 for its innovative soft-folding tonneau covers.

Worksport Continues Elevating Its Position

Worksport has announced today it has received a substantial purchase order of $1,600,000 for its hard folding covers with production expected to kick off in two weeks. Fueled by a soaring momentum, the hard-folding line will only further elevate Worksport’s market positioning as its US facility continues operating at an exceptional pace to ensure timely shipments of soft folding tonneau covers. Worksport’s NY West Seneca facility will be playing an essential role in the launch of its ‘made in the USA’ hard folding covers. The dual success of both product lines and increasing orders affirms Worksport’s strategic direction and the trust it received from the market for its patented technologies that are behind its innovative products. CEO Steven Rossi stated that Worksport continues to work hard on optimizing its efficiency and boosting revenue growth. Meanwhile, Worksport plans to unveil its eagerly anticipated SOLIS solar-powered folding tonneau cover, one that uses collected solar energy to charge its proprietary COR battery system, by the end of the year. By bringing portable off-grid clean energy power to the automotive and EV table, Worksport promises to be among important players who will be shaping the future of all-electric transportation.

GM’s Reported Beyond Solid Q2 Results

Earlier this month, GM already revealed its second quarter brought its best delivery result since 2020’s fourth quarter as it delivered 691,978 vehicles during the period, translating to a rise of 18.8%. Consequently, for the quarter ended on June 30th, GM’s revenue expanded 25.1% YoY to $44.75 billion, topping Refinitiv’s consensus of $42.64 billion. Net income attributable to shareholders made a skyrocketing jump of 51.7% as it amounted to $2.56 billion. EPS rose 60.5%YoY to $1.83 while when adjusted, EPS rose 67.5% to $1.91. The adjustment relates to a $792 million charge for commercial agreements GM made with LG Electronics and LG Energy Solution, as GM is sharing costs for recalling its Chevrolet Bolt EV models that were previously expected to be paid by LG.

GM Uplifted Its Full Year Guidance Once Again

By further intensifying its cost-cutting measures through next year, GM will be lowering costs not only by previously aimed $2 billion but by $3 billion by trimming sales and marketing spending, salary employment, among other expenditures. With these cost cutting initiatives and strong financial performance, GM once again lifted its outlook.

GM now expects adjusted earnings in a range between $12 billion and $14 billion, while the previous range expected in Q1 was between $11 billion and $13 billion. Adjusted automotive free cash flow was also raised from prior $5.5 billion and $7.5 billion to a new range between $7 billion and $9 billion.

Net income attributable to stockholders is expected to be between $9.3 billion to $10.7 billion, while the previously guided range was between $8.4 billion and $9.9 billion.

GM CFO Paul Jacobson noted that a more optimistic outlook is the result of stronger-than-expected pricing power and demand along with exemplary capital discipline.

GM’s EV Plan Remains On Track

As for its EV game plan, GM disclosed more details during its earnings call. It revealed it will be ramping up its output, confirming it is on track to make 100,000 EVs in North America in the remaining half of the year after having met its first goal of 50,000. GM’s new EVs will also be hitting the road this year, namely Silverado EV, Blazer EV, and Equinox EV.

Recap

While a weakened global economy continues to slow down a lot of tension in the air, both GM and Worksport are going full speed ahead as they execute their ambitious game plans and contribute to creating a new and cleaner future of transportation.

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