GM is chasing Tesla with Q1 profits at $2.9 billion

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On the day when Ford is celebrating the launch of F-150 Lightning, GM proudly confirmed the pre-production of the Silverado will begin in just a few weeks. With 140,000 customers who already paid deposits for GM’s electric pickup truck, it bodes well for the Detroit automaker’s future. And the latest financial report shows the present isn’t too shabby either.

Net income for the first quarter of this year stands at a whopping $2.9 billion, same time last year it was $3 billion but still it’s nothing to scoff at. The revenue went up by $3.5 billion all the way to $36 billion. Now – to put these numbers in perspective, Tesla made a bit more profit on half the revenue. That’s the difference between legacy and disruptive automakers.

GM is hell bent on becoming EV leader whatever they mean by it, the goal is to produce 1 million EVs a year by the end of 2025, surely by that time other EV manufacturers will already be long past that number. This year GM plans to manufacture 400,000 all-electric vehicles – somebody please, just pass Mr Barra a dictionary with the word “leadership” highlighted in bright yellow.

We gotta give it to GM, though, it’s working hard to turn the fortunes around, releasing one EV after another after pushing hard with self-driving car services. Hummer EV is already out with the SUV version shortly to follow, next will be Silverado and Chevy Blazer and let’s not forget about Equinox EV. Even the trusty Bolt EV is back on the market after recent recall due to battery fire risk threatening to set every Bolt and its surroundings on fire. “It does what it says on the tin” pops into our minds… GM should be more careful with all those sparky names.

GM is chasing Tesla with Q1 profits at $2.9 billion

The Detroit automaker only recently celebrated beating the first world record in commercial EV space for a longest range all-battery electric van. If that’s not enough then how about an electric Corvette? Yes, GM announced that as well only couple of days ago to a terrified gasp from the hardcore Corvette enthusiasts – this will be the one to watch. All this comes at the time when all automakers are facing huge component shortages, with every brand losing billions of dollars in potential sales and stoppages that affect not only passenger car manufacturing but the commercial side of things as well.

With the slow manufacturing, low stock levels at the GM dealers and the highest inflation the US has seen in a very long time, prices had only one way to go – and they did. 20% increase for crossovers and 10% increase for trucks in a space of one year. GM is not alone here as this situation is affecting absolutely every automaker out there.

The production is currently slowly increasing which gives customers a bit of hope. To avoid any future shortages GM is working hard at securing components and raw materials and that includes palladium which is widely used in catalytic converters – one reason out of many, why GM should switch to EVs. The palladium situation is getting dire for all legacy ICE automakers since the majority of it comes from Russia.

GM is chasing Tesla with Q1 profits at $2.9 billion

The EV side of the GM business is looking promising, new supply agreements for magnets and alloy are in place and the first of four battery manufacturing plants will be up and running later this year. The partnership with LG Energy Solutions is responsible for the newest plant in Lordstown, Ohio – home of all the classic GMs we all love so much.

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