General Motors Company (NYSE:GM) CEO Mary Barra recently discussed the current standing of the automotive industry and touched on the company's transition to electric vehicles; but what may be even more important is what she didn't say.
What Happened: Barra reiterated her confidence in GM's future electric vehicle plans while discussing some challenges the automotive industry is facing last week on Fox Business' "The Claman Countdown."
When Barra was asked about the company's previous EV targets, including the goal to pass Tesla Inc (NASDAQ:TSLA) in EVs by 2025, she seemed to dance around the question.
"We believe, absolutely, with the portfolio of electric vehicles that we have coming out with different, you know, forms, whether it’s a truck, whether it’s a small crossover, a large crossover, [in] the strengths of our brands and our ability from a manufacturing perspective. We’ve said that by 2025, we’ll have a million units in North America alone," Barra told Fox Business.
The GM CEO didn't provide a definitive response to the question, which suggests that 2025 may have been an ambitious target.
Why It Matters: Barra has repeatedly said that GM will surpass Tesla in EVs by 2025. Just last month, Barra told the Associated Press that she’s confident the company can unseat Tesla with higher-priced specialty vehicles. She also added that GM expects to beat Tesla in the race to deliver high-range EVs at affordable prices.
GM will need to ramp up production immensely in order to catch up to Tesla, the global leader in EV sales. Tesla produced more than 258,000 electric vehicles in the second quarter and delivered nearly 255,000, representing an increase of 27% year-over-year.
Related Link: Why Tesla Stock Could Head 7% Lower And Where To Watch For The Bounce
GM delivered 1.421 million vehicles in the second quarter, which was down 19.1% year-over-year. For comparison, GM only delivered about 7,200 electric vehicles during the quarter.
Although it seems Barra isn't so sure the company can pass Tesla in 2025, she does remain confident about the company's electrification efforts — and why shouldn't she be?
GM is likely to see a significant boost in sales when it releases all-electric versions of its popular internal combustion engine vehicles that are on the road today.
Let's not forget that GM has a joint venture with automakers in China for a mini EV, which is incredibly popular and can be purchased for less then $5,000. According to a new Bloomberg report, GM also plans to launch a new two-seater convertible electric vehicle in China on Sept. 1.
See Also: GM JV To Launch Cabrio EV In China: Bloomberg
GM Price Action: GM has a 52-week high of $67.21 and a 52-week low of $30.33.
The stock was down 1.10% at $38.71 at press time Wednesday, according to Benzinga Pro.
Photos: Courtesy of Tesla & GM.
