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Salesforce Lays Off Hundreds of Employees on Accountability
Due to a delay in ramping up battery production, General Motors Co. (GM) lowered its electric vehicle sales target. This represents a setback in its efforts to catch up to EV market leader Tesla Inc. In response to an optimistic third-quarter results announcement in which the automaker achieved a 37% spike in net profits, significantly exceeding analysts' estimates, GM raised its forecast for EV sales in North America through 2023 on October 25, 2022. The results were driven by a significant increase in deliveries of expensive pickup trucks and SUVs, and demand will remain robust despite growing economic difficulties. GM is still attempting to convince investors that it can become a player in the expanding electric vehicle sector, hence the muted projection for EV sales. GM anticipated selling 400,000 electric vehicles between the beginning of 2022 and the end of the following year. But now, it extended the timeline until the middle of 2024. GM's quarterly results revealed that its traditional business had done well despite rising borrowing costs and recessionary concerns that have historically hampered auto sales. On October 25, 2022, GM stock increased by 3.6%. Following the Covid-19 epidemic, GM experienced significant earnings growth for two years. The prices American automobile consumers have been paying continue at record or nearly record levels, even though the shortage of computer chips has reduced productivity and driven up the cost of commodities and transportation. Due to supply constraints, GM prioritized producing its most lucrative cars, such as large pickup trucks and SUVs, which has helped increase profitability. As reported by the company, there has been a significant increase in the total revenue and net profit incurred by GM in the third quarter, Sep 2022, compared to the previous quarters in 2022 and 2021. However, GM's EV sales have not only lagged market leader Tesla further but have also been outperformed by longtime rivals like Ford Motor Company and Hyundai Motor Company. According to General Motors, the third quarter had a record number of Chevrolet Bolt sales. As investors focus on the growing potential of battery-powered vehicles, GM and other conventional automakers are vying to boost sales of electric vehicles. Despite a significant decline this year, Tesla's $685 billion market valuation is still more than ten times greater than GM's. Through October 24, 2022, GM shares had lost 39% of their value due to investor apprehension over escalating commodity prices, ongoing supply-chain issues, and a potential slowdown in consumer demand. Lessening supply-chain restrictions improved GM's bottom line in the third quarter. The period saw the release of tens of thousands of vehicles that were delayed in the second quarter due to supply-chain issues, which was advantageous for the country's largest automaker by sales. Due to a lack of computer chips and other parts, GM stated in June 2022 that it had to set aside roughly 100,000 vehicles, which hurt second-quarter profitability. The third quarter was anticipated to see the shipment of most of that backlog. ?
25-Nov-2022, 09:04 PM