EV Clicks Plummet: GM Trims 2024 Production Target Amid Slow U.S. Adoption

Detroit, Michigan – General Motors has adjusted its projections for sales and production of electric vehicles in response to slower adoption rates in the United States.

During a recent media event in Detroit, GM Chief Financial Officer Paul Jacobson disclosed that the company now anticipates producing between 200,000 to 250,000 electric vehicles this year. This figure is lower than the initial estimate of 200,000 to 300,000 units. Despite growing demand, the pace of adoption has not met expectations.

Jacobson highlighted the company’s commitment to producing to meet demand, emphasizing the current momentum in the business. He also mentioned that GM foresees electric vehicle sales in the U.S. accounting for approximately 8% of the industry, a percentage lower than what many had anticipated, which was around 10%.

GM remains optimistic about the potential profitability of its electric vehicles, with expectations that 200,000 units will yield positive variable profit. This milestone is predicted to be achieved in the second half of the year, possibly in the fourth quarter.

The automaker is in the process of launching new electric vehicles, including the Chevrolet Equinox EV, priced at around $35,000 before potential incentives such as the federal tax credit of up to $7,500. Following a temporary halt in sales due to software issues, GM also reintroduced the Chevrolet Blazer EV. Both vehicles utilize GM’s “Ultium” EV platform and technologies, which are crucial for the company’s electric vehicle growth.

Additionally, GM announced a new $6 billion stock repurchase authorization, supported primarily by sales of its traditional gas-powered vehicles. This buyback initiative follows an accelerated $10 billion share repurchase program announced in November 2023, expected to conclude by the end of this month.

GM’s strategic focus on improving the profitability of its internal combustion engine business while expanding and enhancing the profitability of its electric vehicle sector reflects the company’s efficient capital deployment and commitment to returning value to shareholders.