Last year, the General Motors Group earned $6 billion after taxes. This is partly due to the fact that electric cars have started to make a profit.
Electric cars are now a source of profit for General Motors (GM). The American auto giant can now say that they make money on every electric car sold.
A milestone that marks a significant change from previous economic challenges. In 2024, GM also doubled its market share when it comes to electric cars.
GM's financial results for 2024 show a total profit of $14.9 billion before taxes. Although net income for the year ended at $6 billion due to impairments and restructuring, electric cars have now started to contribute positively to the bottom line.
Part of the $2.9 billion loss in the fourth quarter can be attributed to problems in China and a temporary halt to Cruise, GM's self-driving taxis, which was later shut down completely.
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Despite these challenges, GM has managed to create a profitable electric vehicle business. This contrasts with several competitors that are still losing money on electric vehicles. Ford, for example, was previously estimated to lose about $100,000 per electric vehicle sold.
GM's success is due, among other things, to an effective strategy to reduce production costs and increase sales of electric cars.
"We doubled our market share for electric vehicles during the year as we scaled production," GM CEO Mary Barra wrote in a letter to shareholders.
It is worth noting, however, that part of GM's success depends on government support in the form of US electric car subsidies.
"If the support disappears, it may become more difficult to maintain profitability," a GM spokesperson said.
Uncertainty about future legislation and electric vehicle subsidies could affect GM's profits going forward. President-elect Trump spent part of his first day in office promising to eliminate government subsidies for electric vehicles.
Nevertheless, GM's financial statements are proof that electric cars can be a profitable business. That is, when it is heavily subsidized by the government.
