The Clap
General Motors (NYSE: GM) expects its EVs to begin recording profit in 2025 as the company continues to boost its efforts in the EV industry.
What
Newly added subsidies are expected to help increase the EV segment’s profitability, adding between $3500-$5500 in pre-tax profit per vehicle.
In addition, the company is looking to slash battery costs, adding another battery material supplier to its list.
So What
The company aims to reverse declining sales. The profit from combustion vehicles will be used to fund the company in the future.
Now What
The company is trying to cut costs in order to boost margins, optimizing distribution systems to cut approximately $2,000 per vehicle.
GM forecasts revenues to grow by 12% a year till 2025.
