financetom
Business
financetom
/
Business
/
GM seeks to ease investor concerns as EV growth slows
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
GM seeks to ease investor concerns as EV growth slows
Oct 8, 2024 10:20 PM

DETROIT (Reuters) - General Motors ( GM ) will seek to soothe shareholders' worries on Tuesday that lagging demand for electric vehicles and perceived peak demand for gasoline-powered trucks will create a rough road ahead for the automaker.

CEO Mary Barra and her executive team will emphasize at investor day in Spring Hill, Tennessee, that profit margins have not peaked on traditional internal combustion engine (ICE) powered vehicles, and its EV sales are ramping up, sources previously said.

Investors are also expecting more details on the automaker's restructuring in China, as well as updates around its Cruise autonomous vehicle operations, which has struggled since an accident last fall where one of its self-driving cars dragged a person.

The slower-than-anticipated EV transition has caused many automakers to adjust plans, including GM and cross-town rival Ford, and GM's messaging on Tuesday is expected to focus less on aggressive growth and more on stability.

That will contrast with years past as GM set ambitious targets to rival Tesla, including in 2021 when Barra said GM would double revenue to about $280 billion by 2030.

While EV demand has lagged since Barra set that lofty goal, executives are expected to assure investors that profits on battery-powered models are closer than they think and the introduction of eight refreshed ICE models between now and the end of 2025 leaves room for improvement of profit margins.

Rory Harvey, GM's president of global markets, told Reuters last week that the automaker's third-quarter sales, which included strong gains on its EVs, were "a positive platform leading into investor day."

Barra has said that GM is looking for ways to bring down the cost of its EVs, and last month the carmaker and Hyundai signed a non-binding memorandum of understanding to consider ways to "leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster."

One focus at GM's investor day will be its Ultium Cells battery technology, which investors will see during tours of the battery and EV assembly operations at the company's Tennessee plant.

The meeting will be the first since 2022, after GM delayed the event last year to focus on resolving a strike by the United Auto Workers union.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Kroger Health revamps weight management program to include GLP-1 drugs
Kroger Health revamps weight management program to include GLP-1 drugs
Jun 7, 2024
June 7 (Reuters) - Kroger Health, the arm of grocer Kroger ( KR ) that runs pharmacies and clinics across the U.S., said on Friday it had revamped its weight management program to allow patients to explore medical treatments, including access to GLP-1s such as Wegovy, Zepbound and others. Kroger ( KR ) joins retail peer Costco Wholesale ( COST...
British tech pioneer Mike Lynch acquitted at US fraud trial
British tech pioneer Mike Lynch acquitted at US fraud trial
Jun 7, 2024
(Reuters) -Autonomy founder Mike Lynch was acquitted of fraud on Thursday by a jury in San Francisco, a major win for the entrepreneur who has been dogged by legal problems since the disastrous sale of his company to Hewlett-Packard (HP) for $11 billion in 2011. Representatives for Lynch and U.S. prosecutors said Lynch was acquitted on all 15 charges --...
Neogen Launches Cellulosic Ethanol Measurement Technology for Biofuel Industry
Neogen Launches Cellulosic Ethanol Measurement Technology for Biofuel Industry
Jun 7, 2024
10:19 AM EDT, 06/07/2024 (MT Newswires) -- Neogen (NEOG) said Friday it has launched a new technology that measures cellulosic ethanol from biofuel production. The CelluSmart technology enables the ethanol industry to fully meet its objective of producing low-carbon fuels and potentially helps ethanol producers further cut carbon intensity scores that may help them enter new markets, including sustainable aviation...
Explainer-Why are meme stocks rallying again?
Explainer-Why are meme stocks rallying again?
Jun 7, 2024
(Reuters) -GameStop and AMC Entertainment have again captured retail investors' attention, reminiscent of the meme stock frenzy that gripped Wall Street three years ago, following social media posts from the leading figure behind that rally Roaring Kitty. Here is what you need to know about the recent surge in meme stocks: ROARING KITTY AND HIS SKETCH Keith Gill, popularly known...
Copyright 2023-2026 - www.financetom.com All Rights Reserved