General Motors is expected to release detailed Q2 earnings results on July 25.
General Motors Co (NYSE: GM), a Detroit-based automaker with several vehicle subsidiaries, announced its second-quarter sales on Wednesday, July 05. According to the announcement, General Motors delivered 691,978 vehicles in the United States during the second quarter, up approximately 19 percent Year over Year. The company announced that all its four subsidiaries delivered double-digit increases in sales YoY. During the second quarter, GM announced that its EV section delivered about 15,652 units to the market.
However, the company recorded a significant decline in first-quarter sales, which resulted in a mixed reaction on its stock market. During the first quarter of 2023, General Motors reported total vehicle sales of about 1.3 million including more than 36k electric vehicles. As a result, GM shares closed Wednesday trading at $39.42, up approximately 1.18 percent from the day’s opening price. However, GM shares dropped approximately 0.15 percent during the after-hours trading session. Nonetheless, the company’s stock market has gained approximately 17 percent YTD.
General Motors and Its Market Performance
Undeniably, the company has lagged behind the electric vehicle industry compared to Tesla Inc (NASDAQ: TSLA) which has significantly dominated the American market. As a result, the company has been blamed for not ramping up production of EVs amid the global transition. For comparison purposes, Tesla produced nearly 480k electric vehicles during the second quarter alone and delivered more than 466k units to customers.
The slow transition of General Motors from combustion engines to electric vehicles has seen its global market share decline as more countries champion greener energy.
In the company’s defense, GM CEO Mary Barra highlighted that its EV sector has significantly been hampered by battery production that has been taking longer than expected. Notably, its competitor Tesla has an in-house battery production site that has significantly streamlined its supply chain.
Nonetheless, the company is expected to significantly increase its EV production especially after Tesla confirmed that its charging spots can be used by other EV companies including General Motors. The move is in line with the Biden administration’s to help struggling electric vehicle companies rise and create more jobs.
Thanks to the Bipartisan Infrastructure Law, we’ve already announced over 25,000 infrastructure projects in 4,500 towns across America.
Union workers are building roads and bridges, laying internet cable, and installing 500,000 electric vehicle chargers throughout America.
— Joe Biden (@JoeBiden) June 18, 2023
During the second half of the year, General Motors has planned to unveil several electric vehicle models including the Chevrolet Silverado, Blazer, Equinox, and a $300,000-plus bespoke Cadillac EV dubbed the Celestiq. Previously, the company heavily relied on Chevrolet Bolt models in its EV sales but announced the model will be discontinued during the second half of 2023.
Meanwhile, the company is expected to release detailed Q2 earnings results on July 25.