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GM earnings: Why analysts ‘skeptical’ of EV profit claims
On Tuesday morning, General Motors (GM) reported that its pre-quarter tax profit fell 54% to $ 1.8 billion. In a letter to shareholders, CEO Mary Barra reaffirmed the company’s position for its future, saying: “In our EV business, we expect the US portfolio to turn a positive variable profit in the second half. The second of this year, based on our current expectations for EV demand and production growth, strong interest in our cars, low prices and other factors. In an exclusive interview with Yahoo Finance CEO Brian Sozzi, Barra reaffirmed that sentiment and discussed the implementation of GM’s focus and goals for the future. Garrett Nelson, CFRA Research VP & Equity Analyst joins the live broadcast to provide insights into GM’s proposed goals for the future. When asked about EV goals and profitability prospects, Nelson said: “There is no question that margins are Stronger than gas-powered cars. The internal combustion engine business is strong. But it’s just that they will be included in the duration of their operational plan and operational plan. They point out that they are in the process of creating that focal point. They made easy action for shareholders in the wake of the announcement of a $ 10 billion share repurchase in November, and as a result of EPS 2024 guidance, the growth they are projecting is almost entirely Reflecting the declining stock numbers that are driving EPS growth … it really is a question of how they navigate this transition to EVs, and it will be gradual, perhaps over the next 10 years. Up to 15 years, while before they planned to make even more drastic changes to EVs. For more insights on the latest experts and marketing activities, click here to view the full episode of Yahoo Finance Live.Editor’s Note: This article was written by Nicholas Jacobino