General Motors' electric vehicles lose money today but will bring in more than they cost to build by the second half of next year on the way to mid-single-digit margins in 2025, its top finance executive said Thursday.
The automaker expects its pretax EV margins to improve at least six-tenths of a point in 2024 from this year, CFO Paul Jacobson said at a Barclays investor conference. That's mostly expected to stem from greater production volume, in addition to a more favorable vehicle mix and battery cost reductions, Jacobson said. That should get GM to a positive variable profit, which excludes fixed costs, on its EVs in the second half of 2024, he said.
GM expects to have mid-single-digit EV margins in 2025, including the benefit of U.S. federal Inflation Reduction Act tax credits, he said. The company previously had projected low- to mid-single-digit EV margins before factoring in the tax credits.