**Automaker’s Investor Day Fails to Impress Wall Street**
General Motors’ recent investor day event left Wall Street analysts underwhelmed, with the company’s stock closing essentially unchanged. Despite CEO Mary Barra’s confidence in GM’s ability to outperform the industry and Wall Street’s expectations, investors were unimpressed by the lack of details in the company’s overall strategy.
Barra emphasized the importance of scale, capital efficiency, and cost discipline in differentiating GM from its competitors. However, analysts were disappointed by the absence of sharp shifts in strategy, with some calling it a “missed opportunity.”
**Key Takeaways from the Event**
* GM expects its 2025 adjusted earnings to be in a similar range to 2024, with targeted adjusted earnings before interest and taxes between $13 billion and $15 billion.
* The company anticipates narrower losses for electric vehicles, projecting a decline of $2 billion to $4 billion.
* GM has lowered its battery costs by $60 per kilowatt hour this year and expects to cut another $30 per kilowatt hour next year.
* The automaker plans to produce and wholesale around 200,000 EVs for North America in 2024, achieving profitability on a production basis by the end of this year.
* GM will drop the “Ultium” name for its electric vehicle batteries and supporting technologies, opting for a multifaceted approach with various battery chemistries and cell designs.
* The company expects to continue growing its sales and profits of traditional vehicles with internal combustion engines, with profit increases assisted by cost cutting and consolidation of parts and options.
**Wall Street’s Reaction**
Analysts were divided in their opinions, with some praising GM’s balanced and pragmatic approach, while others expressed disappointment at the lack of details in the company’s strategy. Shares of GM remain up nearly 30% this year, but have been under pressure due to recent downgrades and price target adjustments by Wall Street analysts.
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