Despite being outperformed by Tesla in the electric vehicle (EV) industry, General Motors (GM) has pledged to do more than equal Tesla’s sales record. A new lineup of electric vehicles has GM eyeing the top spot in EV sales. Founded in 1908, General Motors is a household name in the American automobile market. However, the company only has a stake of 9% in the electric vehicle market. This pales in comparison to the huge 63% that Tesla controls.
Tesla has remained a big name in the American electric vehicle market for several years. Since 2003, the company has prioritized the gradual but eventual switch to environmental-friendly vehicles powered by electricity. However, Tesla has witnessed a dip in its market share. Research firm IHS Markit predicts Tesla’s domestic market share of electric vehicles will drop from 79% last year to 56% in 2021. IHS further expects that share will continue to lower, to 20% in 2025, as larger automakers such as GM release an influx of new vehicles.
With General Motors gearing up for a takeover by 2023, GM’s CEO and Chair, Mary Barra, says the company is committed to providing top-quality electric cars to its vast customer range, an ambition that's aimed at skyrocketing sales. Predictions from IHS indicate GM's EV revenue will grow from about $10 billion in 2023 to approximately $90 billion annually by 2030, as the company releases new models.
The automotive-focused global forecasting organization, LMC Automotive, says GM can surpass Tesla as the country’s largest EV seller by mid-decade.
General Motors CEO Has Big Dreams
In a recent interview with CNBC on its “Squawk Box” program, Bara noted GM will surpass Tesla’s feats in the electric vehicle market. Before this interview, GM announced a duo of fresh electric vehicles—Equinox and Blazer. Barra claims GM’s takeover of the electric vehicle market is imminent, stating a timeline of 2025.
Many view this as a bold statement considering that GM does not have any electric cars on sale right now. However, GM will continue the production of the Bolt EV and Bolt EUV which was earlier stalled due to a battery recall. Meanwhile, Tesla continues to grow by smashing sales records.
From the interview, we gathered that General Motors suffered a significant loss in its third-quarter profits due to a semiconductor shortage. When asked why GM, unlike Tesla, did not post huge profits, Barra revealed that Malaysia, a country where its semiconductor plant is located, recorded many coronavirus infections. To safeguard its workers, the plant shut down briefly — a decision that caused the scarcity of semiconductors.
However, Barra said the company is devising ways to avoid a shortage of that nature amid expectations for the current hike in prices to enter 2022.
A Few Vehicles From The Lineup That We Know About
Barra revealed that one of her company’s strategies for the electric market takeover is the release of high-performance vehicles. In the chat with CNBC, she mentioned the release of the Hummer EV this fall. Also, the Cadillac Lyriq and Chevrolet Equinox-sized electric crossover are set for release early next year. These are three of the many vehicles that Barra believes will cause sales to surge.
At the 2021 GM’s Investor Day, GM's President Mark Reuss stated that Chevrolet, a subsidiary of GM, will release an electric-powered edition of the Equinox. Other future releases include a Blazer crossover and a newly designed Chevrolet electric vehicle. We do not know the prices of both vehicles as Reuss left that detail out of his presentation.
“The Chevrolet crossover you see up here is an Equinox EV or the equivalent and is part of our 30 EVs by 2025. This Chevy will be a high-volume player when it arrives at approximately $30,000,” he said.
Final Thoughts On GM's Vision
GM’s lineup of brand-new electric vehicles will operate on the Ultium modular EV platform. We know this because it said so in a recent press release. We also know that the EVs will comprise high-volume entries like the Chevrolet crossover from the above section, Buick crossovers, trucks from a combined force of Chevrolet, GMC, and the Hummer EV.
Let's not forget the Lyriq and Celestiq, which are both amazing electric cars from Cadillac. Less expensive batteries are also in the picture, as General Motors announced it had a new battery plant under construction. This new plant, sited in Michigan, will boost the production and sale of long-lasting batteries that will cost less to own.