What's Driving General Motors Stock Higher? Barra Says Automaker Poised For 'Breakout Year'

General Motors Co GM shares are trading higher Tuesday morning after the company turned in better-than-expected financial results and raised its 2023 outlook.

What Happened: General Motors reported fourth-quarter revenue of $43.1 billion, which beat average analyst estimates of $40.65 billion, according to Benzinga Pro. On a full-year basis, GM said revenue increased 23.4% to $156.7 billion. 

The Detroit-based automaker reported quarterly earnings of $2.12 per share, which beat consensus estimates of $1.69 per share.

GM noted that it led the U.S. industry in total sales and delivered the largest year-over-year increase in market share of any OEM due to strong demand for its products and improved supply chain conditions.

In a letter to shareholders, GM CEO Mary Barra said, "We expect that our momentum will help us deliver strong results once again in 2023. In fact, we have all the essential ingredients to deliver EBIT-adjusted in a range of $10.5 billion to $12.5 billion thanks to our strong operating performance."

GM also expects 2023 to be a "breakout year" for its Ultium Platform. The company said it remains on track to produce 400,000 EVs in North America from 2022 through the first half of next year.

"Our EVs are transformational in so many ways. We’re earning new customers. Our investments are creating new jobs. We’re moving closer to a world with zero crashes, zero emissions and zero congestion, and we believe our R&D, supply chain, manufacturing scale and distribution network will unlock the profitability of EVs," Barra said.

GM expects full-year 2023 adjusted earnings to be in a range of $6 to $7 per share versus estimates of $5.81 per share. 

GM also inked a new deal with Lithium Americas Corp LAC. GM will make a $650-million equity investment to develop the Thacker Pass mine in Nevada. Lithium Americas estimates the lithium extracted from the project can support production of up to 1 million EVs per year.

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GM Price Action: GM has a 52-week high of $55.55 and a 52-week low of $30.33.

The stock was up 4.44% at $37.90 at the time of writing, according to Benzinga Pro.

Photo: courtesy of GM.