GM Accelerates EV Growth: Profit Milestone And New Models Ahead

General Motors (GM) has reached a big turning point in its electric vehicle (EV) journey, announcing that its EV operations have reached a crucial milestone as the company has achieved a positive variable profit in Q4 2024.

GM Hits Positive Profit in Q4 2024

The path to profitability becomes especially noteworthy when considering that even Tesla did not achieve full-year profitability until 2020. GM’s achievement in reaching variable profit positive status means the company is now earning more from each EV than it spends on direct manufacturing costs such as labor and materials, though this figure does not yet account for broader infrastructure investments like assembly line construction.

The company’s success has been driven largely by the popular Chevrolet Equinox EV, which emerged as one of the top five best-selling EVs in the United States (U.S.). This strong performance helped GM’s share of the U.S. EV market double throughout 2024, reaching 12.5% in Q4, up from 6.5% at the beginning of the year. The company’s total EV sales reached 114,432 units in 2024, surpassing Ford’s 97,865 and establishing GM as the second-largest EV seller in the American market behind Tesla.

Mixed Financial Results

The broader financial picture shows mixed results, with GM posting Q4 revenue of $47.7 billion, an 11% increase year over year. However, the company reported a $3 billion net loss, primarily due to significant restructuring costs in China and the suspension of its Cruise robotaxi operations. These special charges, including $4 billion for Chinese operations and $500 million related to Cruise, reduced quarterly net income by over $5 billion.

For 2025, GM maintains an optimistic but measured outlook. The company aims to increase EV production from 189,000 units in 2024 to around 300,000 units in 2025. However, CFO Paul Jacobson emphasized a disciplined approach to production, noting that the company wants to avoid overproduction that could lead to heavy discounting. This careful strategy reflects lessons learned from recent market challenges, with GM successfully reducing EV inventory from 100 days in Q3 to 70 days by the end of 2024.

However, GM faces several challenges in 2025, including potential policy shifts under a new presidential administration. The company has expressed concerns about the future of EV tax credits, subsidies, and potential tariffs on vehicles manufactured in Mexico and Canada. CEO Mary Barra has emphasized the importance of maintaining dialogue with Congress and the administration about supporting American manufacturing and technological leadership.

Cadillac Expands with New Luxury EVs

Moreover, the company’s expansion plans include a significant push into the luxury EV market through its Cadillac brand, which will introduce several new models in 2025, including the Escalade IQ, OPTIQ, and VISTIQ SUVs. This expansion will give Cadillac an EV offering in every segment, supporting GM’s strategy of providing “EVs for everyone” across various price points and vehicle categories.

Read More: GM Powers Ahead: 50% Jump In EV Sales Reaches New Milestones In 2024

GM Signals a Tipping Point for EV Profitability

Despite these uncertainties, GM’s achievement of variable profit positive status on its EVs represents a significant milestone in the automotive industry’s electric transition. As battery costs continue to decrease and manufacturing processes improve, GM’s experience suggests that EVs may be approaching a tipping point where they become consistently profitable for major automakers.

If you are looking for GM models, we can help you get started. Click Here to find the best deals near you. Want to learn more about EV? Thinking of buying an EV? Head over to EV.com and discover more.