3 Reason’s GM is Failing with EVs

General Motors CEO Mary Barra went all in on Electric Vehicles.

She literally bet GM’s future on EVs…

Committing to go all-electric by 2035.

GM is trying to catchup with Tesla – which sold 1.8 million EVs last year.

Click here for details on Tesla’s secret DoJo Initiative.

GM has made a ton of mistakes…

They decided to avoid hybrid cars – and focus exclusively on EVs.

Barra canceled a popular gas guzzling Cadillac in 2018 – because it wouldn’t be a “good look” for the company’s EV ambitions.

Meanwhile, the company planned to produce 1 million EVs annually by 2025.

Now there’s growing evidence that GM’s strategy and execution has been a complete failure.

This shows how difficult it is for traditional automakers to transition to EVs.

It also points toward the continued success of Tesla (NASDAQ: TSLA) and China’s BYD (OTC: BYDDY).

Let’s breakdown three of the major issues facing GM.

1. Production Challenges

GM has released a series of production goals over the year.

They planned to produce 400,000 EVs the middle of this year. And projected 1 million EVs produced in 2025.

There is simply no way GM can hit those goals.

GM sold just 76,000 EVs last year.

Yet the company continues to promise 200,000 – 300,000 EVs this year.

It impossible for GM sales will grow 3X – 4X this year.

2. People Don’t Like GM EVs

GM claims that demand for EVs is lower than expected.

That’s certainly possible…

However, it seems like people simply don’t want an EV from General Motors.

1.2 million EVs were sold in the U.S. in 2023 – a 46% increase.

That seems like a robust and growing market to me.

Tesla saw a 38% increase in EV sales last year. The Kia EV6 saw a 45% increase in sales. And the Volkswagen ID.4 saw sales double in 2-years.

People are buying EVs. And the idea that this market for EVs is weak is simply an excuse.

3. Giving Up on Self-Driving Cars

GM had high hopes for developing fully autonomous EVs.

That’s why Barra invested $8 billion in a startup called Cruise.

Yet an accident in San Francisco forced Cruise to pull 400 robotaxis from the road. And the company lost its license to operate in California.

Meanwhile, Tesla is rolling out full self-driving– click here for details.

It now looks like GM may be giving up on self-driving cars.

Here’s the key takeaway…

Mary Barra trying to transform GM into an EV company.

However, this is much more difficult than she ever imagined.

My advice is to bet on the EV pure-plays like Tesla and BYD.


P.S. GM stock actually jumped 11% last week.

The reason? Strong sales of gas-powered cars. $1 billion in cost-cuts at Cruise. And a better outlook for 2024.

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