General Motors is reportedly preparing to ramp up its electric vehicle (EV) production in a few months to challenge Tesla as Elon Musk grapples with his own business struggles.
According to a Yahoo! Finance article published Tuesday:
“Demand remained firm,” GM CFO Paul Jacobson told Yahoo Finance Live. Jacobson said GM saw sales strength in both lower-priced vehicle trims such as Chevy and higher-end plays like Cadillac.
Jacobson told us GM will aim to double its EV production in the second half of this year as it continues to improve its battery capacity and introduce new models. The company is targeting the production of 50,000 EVs by the end of the first half of this year, he said.
A recent report said Musk’s Tesla faced disappointing first-quarter results as the manufacturer’s share price fell 9.75 percent to $162.99.
“Meanwhile, four minutes after takeoff in Boca Chica, Texas, a SpaceX Starship rocket blew up in midair,” the Breitbart News article said, adding the incidents resulted in Musk’s net worth dropping by over $12 billion.
In addition, GM recently decided to buy out 5,000 salaried American workers as part of its plan to slash billions in costs as it moves toward electric vehicles, Breitbart News reported April 6.
However, CBS News admitted in January 2022 that GM’s electric Hummer, a truck that costs over $100,000, is “not what most Americans want or can afford.”
The Breitbart News report noted electric vehicles do not require as many workers to do the job:
While more than 6.5 million vehicles with internal combustion engines are registered in Michigan, only about 25,000 EVs are registered — suggesting low demand among American consumers.
At the same time, automaker executives view EVs as a boon to their bottom line as they admit the manufacturing and assembling process requires far fewer employees than traditional gasoline-powered vehicles. While executives eye wider profit margins, auto industry employment could plummet as a result.
According to the Yahoo! article, GM “Expects to reach a 1 million annual production mark for EVs in North America by 2025.”
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