With Tesla's (TSLA) stock price in the tank, General Motors (GM) is sending a signal the pressure may stay on Elon Musk in the months ahead.
"EV adoption is going to be choppy. We've certainly seen slowing in the growth rates," GM CFO Paul Jacobson told Yahoo Finance.
Jacobson said GM's retail sales of EVs were up 21% in the first quarter. The company credited the gains to demand for new offerings such as the Cadillac Lyriq.
In coming months, GM will debut a $34,995 Chevrolet EV Equinox and a 440-mile-range Silverado EV truck.
Added Jacobson, "Retail performance for our EVs is actually holding in there pretty well. Now we're scaling up production."
The earnings rundown
Net sales: Up 7.6% year over year to $43 billion vs. estimate of $42.09 billion
Adjusted operating profits: Up 1.8% year over year to $3.9 billion vs. estimate of $3.12 billion
Earnings per share: Up 18.6% year over year to $2.62 vs. estimate of $2.12
What else caught our attention: Big outlook, big share repurchases, Cruise still losing money
Adjusted EPS guidance above consensus: $9.00 to $10.00 vs. $9.04 estimate
Prior guidance: $8.50 to $9.00
Aggressive share repurchases persist: GM's outstanding share count is down 17% year over year
Road to EV profits: Projected "variable" profits in EV business in the second half of 2024
Cruise costs: Driverless division lost $515 million on an operating basis in the first quarter, with the cars still off the road
The competitor landscape
The EV industry continues to face pressure from falling auto prices, while Tesla's share price has plunged year to date. Curious about how investing pros are navigating the EV trade, and Tesla in particular? Tune into the latest episode of the 'Opening Bid' podcast down below, where we talk at length about the Tesla trade and robotaxis.
Brian Sozzi is Yahoo Finance's Executive Editor. He is also the host of the 'Opening Bid' podcast. Follow Sozzi on Twitter/X @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email [email protected]. Are you a CEO and want to come on Yahoo Finance Live? Email Brian Sozzi.
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