“GM could be a major player in the EV market with Tesla,” wrote Wedbush technology analyst Daniel Ives. “The Hummer EV … will be one of the foundational models as part of GM’s $20 billion push into the EV space.”
The automaker said it targets selling 1 million combined electric vehicles a year in the Chinese and US markets over the next five years.
“GM has a strong opportunity to establish itself as a major player in the EV market over the next decade,” Ives added.
But CEO Mary Barra insists that the strong sales of traditional trucks and SUVs is what giving GM the cash it needs to make the transition to electrics.
“The strength of our full-size truck platform and the franchise there, full-size SUVs, gives us excellent opportunity to self-fund our growth in EVs and then leverage all the assets we bring, whether it’s manufacturing, engineering, technology,” she told investors in a conference call Thursday following the strong earnings report.
So that explains GM’s commitment to electrics. Beyond any desire to combat climate change or improve the environment, GM also intends to eventually improve its bottom line. And that also explains why those who want to invest in electric vehicles are giving one of the oldest automakers a new look.