General Motors reported that its electric vehicles became “variable profit positive” in Q4 2024. The milestone was driven by higher production efficiency, lower battery costs, and the launch of high-end models like the Cadillac Escalade IQ and GMC Sierra EV. GM sold approximately 189,000 EVs in 2024, missing its 200,000-unit target but doubling its market share.
General Motors announced that its electric vehicles became “variable profit positive” in the fourth quarter of 2024, marking a key milestone in the company’s EV transition. This means that revenue from its EV sales exceeded direct costs like labor and materials, though it does not account for long-term expenses such as factory investments. The shift toward profitability was driven by improved production efficiency, lower battery costs, and the launch of high-priced models like the Cadillac Escalade IQ and GMC Sierra EV.
GM sold approximately 189,000 EVs in 2024, slightly missing its target of 200,000 but still doubling its market share. The company saw steady quarterly sales growth, from 16,000 units in Q1 to nearly 44,000 in Q4, helping it capture 12.5% of the U.S. EV market by year-end. Inventory levels also improved, with EV supply dropping from a 100-day stock in Q3 to 70 days in Q4, moving closer to industry norms.
Looking ahead, GM aims to produce 300,000 EVs in North America in 2025, focusing on scaling up production and further reducing costs. The company believes that increased manufacturing efficiency and absorption of fixed costs will continue to improve its EV profitability. While progress has been made, GM still lags behind its earlier ambition of producing one million EVs annually by 2025, a goal it has since scaled back due to slower-than-expected market development.
Despite past production setbacks, GM remains committed to expanding its EV lineup and refining its battery supply chain. The company’s improving financial outlook suggests that its EV strategy is gaining traction, but competition in the sector remains fierce. As GM works to balance supply, demand, and profitability, the next year will be crucial in determining its long-term success in the electric vehicle market.
