Key takeaways from General Motors’ investor day

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  • Rising profit margins and projected revenue from $280 billion to 1 million robotaxis by 2030, a look at the most important figures from General Motors’ Investor Day.

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DETROIT — General Motors gave investors a detailed look at its financials on Wednesday, revealing how the automaker plans to increase profit margins and double its revenue to nearly $280 billion by the end of this decade.

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To meet such lofty goals, GM CEO Mary Barra and her executive team plan to transition from what they call the traditional automaker to a “platform company,” moving its core businesses of manufacturing and selling cars “beyond the vehicle.” Taking advantage to expand and develop. “

“General Motors is delivering technologies that redefine people and goods,” Barra said Wednesday during a two-day investor event at GM’s tech campus in suburban Detroit. “Our commitment to the vision of a world with zero accidents, zero emissions and zero congestion has put us well ahead of the competition.”

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Investors were not immediately impressed by GM’s announcements during the more than five-hour event. The automaker’s stock fell less than 1% on Wednesday to close at $53.93 per share. The stock rose nearly 2.5% to $55.25 per share on Thursday morning.

After the first GM of the two-day investor event, GM CFO Paul Jacobson said he was not concerned about the lack of stock price volatility. He said the company wants to clearly layout its plans, some of which have been lost by investors due to the coronavirus pandemic and global semiconductor chip shortages.

“We obviously put a lot on the market today and I think they will process it, but we are very confident,” he told reporters during a briefing. “We didn’t come out today to push the stock price, we came out today to make sure people understand the mindset of what we have here.”

In addition to revenue growth, here are other numbers investors should keep in mind as GM tries to execute on its plans.

profit margin

GM plans to increase its operating profit margin to between 12% and 14% by 2030. This is up from 7.9% in 2020.

brightdrop

Much of Wednesday’s Investor Day was focused on the company expanding its business to generate recurring software- and service-based revenue.

GM is aiming to grow the revenue of such operations as OnStar as well as from new businesses such as its multi-owned self-driving subsidiary Cruise and commercial EV unit Brightdrop, from $2 billion to $80 billion by 2030.

GM said most of the new, incremental revenue is projected to be during the back half of this decade.

EVs

GM forecasts EV revenue to grow from about $10 billion in 2023 to about $90 billion annually by 2030 as the company launches new models, including at least 30 new electric vehicles by 2025.

capital spending

GM’s annual capital expenditures, including investments in joint ventures to build battery plants, are expected to range from about $9 billion to $10 billion in the medium term as the company transitions to a multi-core EV product portfolio.

GM said it expects to fully fund these investments through internally generated funds.

Speed

As part of GM’s move to get more recurring revenue, the automaker plans to offer remote upgrades for its vehicles.

According to Alan Wexler, GM’s senior vice president of innovation and development, they’re expected to see performance enhancements ranging from hands-free driving techniques to things like “0-60 acceleration software upgrades.”

EV chargers

To increase the availability of electric vehicle chargers — a major barrier to EV ownership — GM plans to invest about $750 million in equipment by 2025. This includes home, workplace and public charging across the US and Canada, GM said.

Robotaxis

Cruise CEO Dan Ammann said the majority-owned self-driving subsidiary expects to start charging for roboticaxis in self-driving vehicles in San Francisco by 2022, pending state approval.

The company was granted last week a fifth of the sixth permit required to commercialize a self-driving ride-hailing fleet in the state.

autonomous driving

Cruise is targeting a fleet of 1 million or more self-driving vehicles by 2030, according to slides presented by Amman to investors.

“We expect the business to grow rapidly,” Amman said.

Amman did not specifically discuss the 2030 target, but a cruise spokesperson confirmed “that is where the company believes it can be.”

EV / AV expenses

For the first time ever, GM detailed its previously announced plan to spend $35 billion on electric and autonomous vehicles by 2025.

The plan includes $20 billion in capital and engineering related to electric vehicles; $10 billion in battery and motor production and development, including new plants; and $6 billion in cruises.

ultra cruise

GM said that in 2023 it will release a new hands-free system called “Ultra Cruise” that is capable of driving in 95% of scenarios. The system is expected to be far more capable than its current Super Cruise system, which is exclusively available on pre-mapped divided highways.

At launch, GM said, the Ultra Cruise will be available with more than 2 million miles of road in the US and Canada. Super Cruise is currently available with over 200,000 miles of road.

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