GM surges in EV market, but the road ahead isn’t easy

GM has charged into 2025, doubling its U.S. market share in the EV sector—powered by the success of the now top-selling Equinox EV. 

First things first: News of GM’s sales climb in the EV sector was revealed in the company’s Q4 2024 earnings in which the automaker touted being the “fastest-growing high volume EV manufacturer.” 

• Sales of the new electric Chevy Equinox surged 85% and ended up being one of the top five best-selling EVs in the US for the fourth quarter.

• The Chevy Blazer, Cadillac Lyriq, and GMC Hummer EV also helped GM increase its EV market share, with the Lyriq and Hummer EV posting their best sales quarters to date. 

Prior to Q4, GM was already showing signs of meaningful market share growth for EVs, surpassing Ford by the first half of 2024 and making GM second to only Tesla in EV sales in the U.S. 

Between the lines: GM has maintained its commitment to electrification as a key component of its business growth, now offering electric vehicles across practically every market segment.

• In 2024, GM sold 189,000 EV units wholesale, only 11,000 short of its initial production goal of 200,000, amid a host of market challenges.

• Even more impressive, the company managed to reduce its EV inventory from 100 days in Q3 to 70 days in the fourth quarter.

• GM expects its EV operating loss to improve by $2 billion, which falls at the lower end of the company’s $2 billion to $4 billion target.  

Follow the money: Overall, GM’s fourth-quarter revenue was $47.7 billion, an 11% increase year-over -year, though the company did report a net loss of $3 billion due to its restructuring in China.  

• GM’s EVs also are now “variable profit positive,” meaning they generate more revenue than their direct production costs. That doesn’t mean the division is profitable yet… but it’s a big step in that direction.

Bottom line: Given the looming challenges facing the EV market (including the elimination of the $7,500 federal tax credit for electric vehicles), GM will likely face some headwinds as it looks to build on its Q4 EV sales surge. And if EV demand does indeed decline, CEO Mary Barra said she’d “happily” increase gas vehicle production.

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