General Motors Company (NYSE: GM) is in focus on Thursday after the automaker said it will achieve an important EV milestone years ahead of schedule.
Inflation Reduction Act to benefit GM
The car company now expects its profits from electric vehicles to be comparable to gas vehicles by 2025.
According of CEO Mary Barra, much of that optimism is related to the President Biden’s “Inflation Reduction Act” that promises significant incentives to automakers that produce electric vehicles in North America.
It’s clear these credits will help usher in a new era of tech innovation and job creation that’ll achieve what was intended. It’ll be good for American economy, American families, environment, and frankly, General Motors is well poised.
These comments were made during the company’s annual investor event on Thursday. Last month, the multinational reported better-than-expected profit for its third financial quarter.
General Motors’ progress in electric vehicles
In recent years, General Motors has aggressively invested in Ultium – a battery and motor architecture that sits right at the heart of its all-electric future.
Earlier in 2022, the legacy automaker signed supplier agreements for enough battery raw materials to build 1.0 million EVs in 2025. Its joint venture with LG Chem – Ultium Cells LLC is expected to be running at least three facilities in the U.S. by the end of 2024.
General Motors also announced its biggest EV deal with fleet operator Hertz Global Holdings in September (detailed here).
Wall Street currently has a consensus “overweight” rating on this automotive stock that’s down more than 40% versus its year-to-date high at writing.
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