General Motors’ Chief Financial Officer has just warned that demand for electric vehicles will be “choppy,” suggesting that Tesla may remain under pressure in the coming months.
GM retail sales surged 21% in Q1
General Motors CFO Paul Jacobson forecasts the demand for electric vehicles to be unstable in the coming months due to the slow growth in the market, Yahoo Finance reported.
“EV adoption is going to be choppy. We’ve certainly seen slowing in the growth rates.’
GM CFO Paul Jacobson
Despite this discouraging forecast, the GM executive noted that the company’s electric vehicle retail sales grew 21% in Q1 2024. It also indicated that this notable sales growth is highly due to the new model launches, including the Cadillac Lyriq.
GM is expected to launch the new Chevrolet EV Equinox with an attractive price of $34,995 in the US market. It will also introduce the new Silverado electric truck with a driving range of 440 miles.
Earnings results
Presented below are highlights of General Motors’ financial results in Q1 2024:
| Q1 2024 | Estimate | YoY Change | |
| Net sales | $43 billion | $42.09 billion | Up 7.6% |
| Adjusted operating profits | $3.9 billion | $3.12 billion | Up 1.8% |
| Earnings per share | $2.62 | $2.12 | Up 18.6% |
| Automotive Operating Cash Flow | $3.6 billion | – | Up 61.2% |
| Adjusted Automotive Free Cash Flow | $1.09 billion | – | – |
Moving forward
General Motors increased its full-year guidance for its net income to $10.1 billion – $11.5 billion. It represents a significant adjustment from the original guidance of $9.8 billion – $11.2 billion. Other adjustments are as follows:
| Updated 2024 Guidance | Previous 2024 Guidance | |
| Net income attributable to stockholders | $10.1 billion – $11.5 billion | $9.8 billion – $11.2 billion |
| EBIT-adjusted | $12.5 billion – $14.5 billion | $12.0 billion – $14.0 billion |
| Automotive operating cash flow | $18.3 billion – $21.3 billion | $18.0 billion – $21.0 billion |
| Adjusted automotive free cash flow | $8.5 billion – $10.5 billion | $8.0 billion – $10.0 billion |
| EPS-diluted | $8.94 – $9.94 | $8.50 – $9.50 |
| EPS-diluted-adjusted | $9.00 – $10.00 | $8.50 – $9.50 |
The American electric vehicle giant also now expects its capital spending to reach $10.5 billion – $11.5 billion, including its battery cell manufacturing joint ventures.
In addition, it also increased its adjusted EPS guidance above consensus from the prior $8.50-$9.00 to $9.00-$10.00. It now expects to gain “variable” profits in the electric vehicle business in Q2 2024.
GM’s Q1 2024 results mirror a solid financial and operational performance, even exceeding analyst forecasts. Its upward adjustments to its FY guidance demonstrate its strong dedication to advancing its position in the highly competitive electric vehicle market.
