General Motors (GM) is forecasting annual sales growth of 12% through 2025 driven by increased electric vehicle sales.
The company also said that its electric vehicle program will be profitable by 2025, answering a key question for analysts who cover the Detroit automaker.
In an investor day presentation, General Motors added that it now projects free cash flow of $11 billion U.S. this year, compared with previous guidance of $7 billion U.S. to $9 billion U.S.
The company expects earnings for all of 2022 of $13.5 billion U.S. to $14.5 billion U.S., down about $500 million U.S. from previous estimates.
Looking ahead, GM executives forecast cumulative growth of 50% over the next three years, with electric vehicle sales adding to the bottom line by 2025.
Electric vehicle sales should exceed $50 billion U.S. in 2025, GM management said. The company plans to build 400,000 electric vehicles in North America through the first half of 2024.
GM’s production capacity should hit one million units annually in North America in 2025, the company said.
General Motors’ stock is down 37% this year and trading at $38.64 U.S. per share.
