General Motors Cut Its 2024 EV Sales Goal Over Demand Concerns

The new target is 200,000-250,000 units, which still represents serious growth over 2023.

Chevrolet Equinox EV

Mark Kane

By: Mark Kane

Jun 11, 2024 at 5:39pm ET

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After a challenging introduction of its first Ultium-based EVs, General Motors has entered a phase of quick expansion, although not as fast as initially anticipated.

According to GM Chief Financial Officer Paul Jacobson (via CNBC), the company trimmed its EV production expectations to 200,000-250,000, compared to the previously announced 200,000-300,000. That's a 50,000-unit reduction of the upper boundary of the goal.

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Q2 2024 might be a record quarter

In the first quarter of 2024, GM sold in the U.S. 16,425 all-electric vehicles. It seems that this quarter will be a record one, far above the 20,670 units in Q1 2023, thanks to the Ultium EV ramp-up.

The 200,000-250,000 bracket is not a bad one, considering GM's historical results. It will still be a big jump compared to previous years.

In 2023, the company's core brands sold 75,883 EVs in the U.S. (plus a smaller number in other markets). In Q1, U.S. sales amounted to 16,425 (down 20.5% year-over-year). Even with 150,000 sales this year, GM would achieve a 100% year-over-year growth rate. That's especially impressive given that its most-popular EV last year was the Chevy Bolt, which is no longer available.

A clear sign of strong sales is more than 9,500 EV sales in North America in May (we reported about this a few days ago). Potentially, GM might soon sell 30,000+ or even 50,000+ EVs per quarter. Not bad considering that it never exceeded 21,000 before.

The expected volume will not be as high as previously planned due to some demand concerns and slower-than-expected EV adoption. We heard from multiple brands that 2024 EV sales might be mostly flat.

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Jacobson says GM expects EVs to make up 8% of U.S. EV sales. It seems that at least some of the other players are targeting 10% (aside from Tesla, which controls about half of the EV market in the U.S.).

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Another important thing is that GM set a target to achieve EV profitability "on a production, or contribution-margin basis, once it reaches production of 200,000 units", the article says. This milestone is expected in the fourth quarter of 2024, according to Jacobson

This underlines how important the volume is. For GM, a crucial element for its EV volume is the latest Chevrolet Equinox EV model, which promises to offer 319 miles of EPA range for $35,000 before tax credits. The trims on sale now are more expensive, though still affordable.