While Ford is estimated to have lost billions on its EV business last year, General Motors recently announced that it actually made more than it spent on electric vehicles in 2024. This is a significant milestone for the automaker, but uncertain times lie ahead, with new policy flying out of the White House at a dizzying pace.
The announcement means that the automaker’s revenue from EVs exceeds its fixed costs to build them, which include labor and materials. It does not include other costs, such as building factories. GM CEO Mary Barra said, “We doubled our EV market share over the course of the year as we scaled production,” but she noted that changes in the federal EV tax credit and trade policies could impact its position moving forward.
“Of course, there is uncertainty over trade, tax, and environmental regulations and we have been proactive with Congress and the administration,” she noted. “In our conversations, we have stressed the importance of a strong manufacturing sector and American leadership in advanced technologies. It’s clear that we share a lot of common ground, and we appreciate the dialogue.”
While this is good news for GM, it’s having a hard time in China, as domestic automakers there have an extreme upper hand with government subsidies and support. Losing the EV tax credit could also be a significant problem for the automaker, as many of its models qualify. Trump has also promised tariffs on Mexican and Canadian imports, which could drastically change how GM manages its cross-border supply chains and manufacturing locations in those countries.
[Images: General Motors]
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