General Motors (GM) has adjusted its anticipated sales and production figures for all-electric vehicles (EVs) this year, citing a slower-than-expected adoption of EVs in the United States. The company's Chief Financial Officer, Paul Jacobson, revealed that GM now expects to produce between 200,000 and 250,000 EVs in 2024, down from the previously announced range of 200,000 to 300,000.

 Factors Behind the Adjustment

1. U.S. EV Demand: Despite growing interest in electric mobility, the adoption of EVs in the U.S. has been slower than anticipated. Jacobson emphasized that GM remains committed to producing vehicles based on demand, but the pace of adoption has not matched initial expectations.

2. Industry Comparison: GM's projection of U.S. EV sales stands at around 8% of the industry, which is lower than some other estimates. Many experts had predicted that EVs would account for approximately 10% of total industry sales in 2024.

3. Profitability: Despite the adjustment, GM still expects its EVs to be profitable. The company aims to achieve variable profit positivity at 200,000 units, likely during the second half of the year.

 New EV Models

GM is actively launching new EVs as part of its growth strategy:

- Chevrolet Equinox EV: The company recently introduced the entry-level Chevrolet Equinox EV, priced at around $35,000 before any federal incentives. This model is crucial for GM's EV expansion.

- Chevrolet Blazer EV: GM also relaunched the Chevrolet Blazer EV, which shares the same "Ultium" EV platform and technologies. The Blazer EV faced temporary sales halts due to software issues.

 Capital Allocation

In addition to adjusting its EV forecast, GM announced a new $6 billion stock repurchase authorization. This move comes after an accelerated $10 billion share repurchase program initiated in November 2023, which is expected to conclude by the end of this month. Jacobson emphasized the company's focus on profitability in both its internal combustion engine business and its EV segment, allowing for efficient capital deployment and shareholder returns.