EVsGM continues to target production and vehicle wholesales of...

EVs

GM continues to target production and vehicle wholesales of between 200,000 and 250,000 all-electric vehicles in North America, despite slower-than-expected adoption.

Its EV deliveries during the quarter increased 40% compared to a year earlier to 21,930 units. Still, EVs made up only 3.2% of its total second-quarter U.S. sales.

Jacobson reconfirmed that GM expects its EVs to be profitable on a production, or contribution-margin basis, once it reaches production of 200,000 units by the fourth quarter.

GM's 2024 Chevrolet Equinox EV during a media launch event for the vehicle in Detroit, May 16, 2024.

GM’s 2024 Chevrolet Equinox EV during a media launch event for the vehicle in Detroit, May 16, 2024.

Michael Wayland / CNBC

“EVs are going to be an earning headwind as we scale, until we reach variable profits positive during the fourth quarter, then they should start to become a tailwind for EBIT,” he said.

Jacobson declined to discuss potential plans to delay or cancel the automaker’s plans for EV battery cell production in North America, aside from two joint venture plants currently producing cells with LG Energy Solution in Ohio and Tennessee.

“We’re going to continue to be guided by the customer. We’re rapidly scaling in cell plants one and two,” Jacobson said. “We have nothing to comment on right now.”

Last week, GM CEO Mary Barra said the automaker’s goal of reaching EV production capacity of 1 million vehicles in North America by the end of 2025 was heavily in doubt..