Categories Analysis, Industrials

General Motors (GM) has some strong plans for its electric and autonomous vehicles fleet

The company plans to invest $7 billion in EVs and AVs this year

Shares of General Motors Co. (NYSE: GM) have gained 144% in the past 12 months and 40% since the start of this year. The company’s first quarter 2021 earnings results, which came out this week, pleased investors, and analysts are impressed with the way the automaker seems to be navigating through the ongoing semiconductor crisis.

GM also has some strong plans in place for its electric and autonomous vehicles development. The company plans to invest $7 billion in EVs and AVs this year as well as make progress on 12 EV programs announced last year.

Electric vehicles

In Q1, GM unveiled its second HUMMER EV model, the 2024 GMC HUMMER EV SUV which will launch in 2023 and feature the company’s own software-driven technologies. It also launched the Cadillac LYRIQ nine months earlier. This model will be available in the first half of 2022.  

GM plans to roll out the redesigned Chevrolet Bolt EV and new Bolt EUV this summer and it will introduce a Silverado full-size electric pickup truck for its retail and fleet buyers. The company’s BrightDrop commercial delivery business is progressing well and it remains on track to deliver EV600s to its first customer FedEx Express by the fourth quarter of this year.

GM has partnered with Honda to develop two Ultium-based EVs in North America. These two vehicles, a large SUV for the Honda brand and one for the Acura brand, will be rolled out during the 2024 model year.

Autonomous vehicles

General Motors’ self-driving vehicle subsidiary, Cruise, managed to raise $2.75 billion in its latest round of funding with investments from the likes of Microsoft (NASDAQ: MSFT) and Walmart (NYSE: WMT). This brings Cruise’s valuation to more than $30 billion and moves it closer to commercialization. Cruise has signed a deal with Dubai to provide self-driving taxis and ride-hailing services and it plans to deploy up to 4,000 self-driving vehicles by 2030 in the region.

Battery

GM remains confident that its Ultium battery range will provide storage and cost efficiencies. The company expects to achieve a 40% reduction in battery costs with its first generation Ultium platform and a 60% reduction with the next generation Ultium platform with further reductions down the line.

GM expects to start the production of its next-gen Ultium battery by the middle of this decade and it is also working on expanding its battery cell manufacturing footprint. The company has announced a second battery cell plant in Tennessee which is anticipated to come online in late 2023.

Through partnerships, GM has established a major charging network which will provide customers with around 60,000 plugs across the US and China. The company opened three fast-charging stations in California, Washington and Florida through its alliance with EVgo and expects 500 fast-charging stalls to go live by the end of 2021. With these efforts, GM aims to capture a leading share in the EV market in North America in the coming years.

Click here to read the full transcript of GM Q1 2021 earnings conference call

Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!

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