‘We Will Win in the EV Space’

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General Motors Co (NYSE: GM) rose nearly 10% this morning after the legacy automaker reported better-than-expected results for its fiscal fourth quarter.

General Motors shares strong guidance

The stock also rose after the carmaker gave upbeat guidance for the full year. GM expects adjusted earnings per share in 2023 to be between $6.0 and $7.0. Yahoo FinanceCFO Paul Jacobson said:


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Demand for our vehicles remains strong. Looking at the quality and pricing we launched, 2022 was a great December, and 2023 is off to a good start.

The finance chief acknowledged that General Motors isn’t packing on “any” recession in its future outlook. The Vehicle share It has now increased by about 15% per year.

General Motors has no layoff plans

General Motors sold about 2.7 million vehicles in North America last year. Over the next two years, it plans to cut $2.0 billion in costs, but according to CFO Jacobson, it is not seeking layoffs to accomplish said cost cutting.

We manage headcount through attrition and targeted hiring, but we also make sure we monitor costs so that if we are in a price weakening situation, we can act quickly.

Wall Street currently rates General Motors stock at an average rating of “Overweight”.

General Motors’ Q4 Financial Highlights

  • Net income was printed at $2.0 billion versus $1.74 billion last year
  • Earnings per share also rose significantly from $1.16 to $1.39
  • As per Adjusted EPS printed at $2.12 Earnings press release
  • Revenue rose 28% year-over-year to $43.11 billion
  • The consensus was $1.69 in adjusted EPS on revenue of $39.96 billion

GM to invest in Lithium Americas Corp

On Tuesday, General Motors Revealed plans A $650 million investment in Lithium Americas Corp (NYSE: LAC ) in line with its broader EV ambitions. According to CFO Jacobson:

We’ve seen incredible demand for our EVs. We have seen consumers flock to them at current price levels. We think we will be successful in the EV space now and for the long term.

General Motors is committed to increasing its electric vehicle sales in North America to 1.0 million units annually by 2025.

It also expects profits from EVs to be comparable to gas vehicles over the next three years Invezz is reported here. By 2035, it wants to become a pure-play EV company.

With the Altium platform and our production scale, we think we can offer vehicles in different classes, segments and price points. Do it while hitting our margin targets.



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