Core Viewpoint - General Motors (GM) held an investor day focusing on operational updates and strategies to differentiate itself in a challenging market, but the event did not significantly impact its stock price [1][3]. Financial Performance and Projections - GM expects its 2025 adjusted earnings to be in a "similar range" to 2024, with targeted adjusted earnings before interest and taxes for 2024 between $13 billion and $15 billion, or $9.50 to $10.50 per share, an increase from previous guidance [5]. - For the first half of 2024, GM reported $8.3 billion in EBIT-adjusted earnings and $6.4 billion in adjusted automotive free cash flow [6]. - GM anticipates narrower losses for electric vehicles in 2025, projecting a decline of $2 billion to $4 billion in losses, aided by increased production volume and reduced costs [7]. Electric Vehicle Strategy - GM plans to produce and wholesale about 200,000 EVs in North America in 2024, achieving profitability on a contribution-margin basis by the end of 2023, a reduction from earlier targets [7]. - The company will discontinue the "Ultium" branding for its electric vehicle batteries, opting for a multifaceted approach to battery technologies [8]. Internal Combustion Engine (ICE) Outlook - GM expects continued growth in sales and profits from traditional ICE vehicles, with a focus on cost-cutting measures [9]. Shareholder Returns - GM plans to remain active in share buybacks, targeting to reduce outstanding shares to below 1 billion by early 2025, having returned approximately $20 billion to shareholders through buybacks and dividends from 2022 to the end of 2024 [10]. Challenges and Market Position - Wall Street analysts expressed disappointment with GM's updates on its Cruise autonomous vehicle unit and operations in China, where earnings have been declining [11]. - GM's CEO indicated a potential turnaround in China with reduced dealer inventory and modest sales improvements expected [11]. Additional Notes - GM is working on definitive agreements with Hyundai following a non-binding memorandum of understanding [12]. - The next-generation Chevrolet Bolt EV is expected to be priced slightly higher than the 2023 model, which started at $28,795 [12].
Here's what investors need to know after GM's capital markets day