General Motors Investor Day Overview

By Nora Eckert

DETROIT (Reuters) – General Motors (NYSE:GM) will address shareholder concerns regarding dwindling electric vehicle (EV) demand and the peak demand for gasoline trucks during its investor day on Tuesday in Spring Hill, Tennessee.

CEO Mary Barra and her executive team will emphasize that profit margins on traditional internal combustion engine (ICE) vehicles have not peaked, and that EV sales are increasing, according to prior sources.

Investors are looking for updates on GM's restructuring in China and its Cruise autonomous vehicle operations, which have faced difficulties since a self-driving car incident last fall.

The slower EV transition has caused automakers, including GM and rival Ford (NYSE:F), to adjust their plans. Tuesday's messaging from GM is expected to prioritize stability over aggressive growth.

This approach contrasts with GM's previous ambitious targets to compete with Tesla (NASDAQ:TSLA), including Barra's 2021 goal to double revenue to $280 billion by 2030.

Despite lagging EV demand, executives are expected to reassure investors that battery-powered model profits are achievable. The introduction of eight refreshed ICE models by 2025 is also anticipated to enhance profit margins.

Rory Harvey, GM's president of global markets, mentioned that third-quarter sales, which showed strong EV gains, provide a solid foundation leading into investor day.

Barra has indicated that GM is exploring ways to reduce EV costs, and last month GM and Hyundai (OTC:HYMTF) signed a non-binding memorandum to leverage their strengths for cost reductions and faster delivery of a wider range of vehicles and technologies.

A key focus during GM's investor day will be the Ultium Cells battery technology, which attendees will see during tours of the Tennessee battery and EV assembly operations.

This meeting will be GM's first since 2022, as the event was delayed last year to resolve a United Auto Workers strike.