As soon as General Motors (GM) reported a profit increase in the fourth quarter, spurred once more by record revenue and strong demand, the automaker’s shares soared early on Tuesday.
In line with what CEO Mary Barra referred to in a letter to shareholders as “strong customer demand,” the business posted profits for the entire year of $14.5 billion, close to the high end of its expectation.
General Motors exceeded expectations with adjusted EBIT (profits before interest and taxes) of $3.8 billion, exceeding the $3.2 billion average. Additionally, GM reported full-year adjusted EBIT of $14.5 billion, exceeding its earlier guidance range of $13 to $15 billion.
Thanks to robust demand for our goods and improved supply chain conditions, GM topped the U.S. industry in total sales and produced the highest year-over-year growth in market share of any OEM, according to Barra’s shareholder letter.
GM stock rose as much as 9% in early Tuesday trade.
On the EV front, GM claimed that record sales of the Chevrolet Bolt EV and Bolt EUV in 2022 proved the “value of affordable EVs in our lineup.” In 2023, affordable EVs will be in demand, with rivals Tesla and Ford lowering the cost of some EV models this year alone.
Additionally, GM said that it sold 1.1 million full-size pickups, mid-size pickups, and full-size SUVs, making it the market’s top seller of trucks.
GM projects adjusted EBIT of $10.5 billion to $12.50 billion and adjusted EPS of $6.00 to $7.00 for 2023.
Barra stated, “We anticipate that our momentum will help us generate great earnings once more in 2023.
In order to develop the largest known lithium mine in the United States, which is located in Nevada, GM also disclosed that it had acquired a $650 million share in Lithium Americas. According to GM, the quantity of lithium that is collected and processed there can power 1 million EVs annually.
