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General Motors Slows Down Its Electric Vehicle Plans Again, Despite Growing Sales
As I reflect on General Motors’ (GM) recent moves, I’m struck by the contrast between its slowing electric vehicle (EV) plans and its growing sales. Despite the company’s commitment to an all-electric future, it’s clear that the journey is not without its challenges.
A Shift in Strategy
GM has revised its production targets for all-electric vehicles in North America, aiming for between 200,000 and 250,000 units. This adjustment comes as the company faces slower-than-expected growth in the EV market. While sales are still on the rise, the pace is not as rapid as initially anticipated.
Sales Growth Amidst Challenges
In the second quarter, GM reported a 20% year-over-year revenue growth, with earnings per share (EPS) reaching $1.43 compared to the expected $1.15. The company’s monthly active users (MAU) also saw a 14% increase to 626 million. These figures indicate that GM is still making progress, even if its EV plans are not unfolding as quickly as planned.
Industry Context
The automotive industry is undergoing significant transformations, and GM is not alone in its struggles. Other major players, such as UPS, are also experiencing challenges. UPS reported a 30% year-over-year profit decline, despite a return to growth in shipping volume after nine quarters of pandemic-related disruptions.
Looking Ahead
As GM navigates these challenges, it’s essential to consider the broader context. The company’s decision to slow down its EV plans may be a strategic move to ensure long-term sustainability. With earnings reports from other major players like Tesla (TSLA), Alphabet (GOOG), Visa (V), and Enphase Energy (ENPH) on the horizon, the coming days will be crucial in understanding the industry’s trajectory.
Original Article: https://www.cnbc.com/2024/07/23/gm-slows-its-ev-plans-again-even-as-sales-grow.html
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