We've always pushed for General Motors to succeed with EVs. In fact, if you know anything about InsideEVs' history, you know that we got our start due in part to a loyal group of Chevrolet Volt owners, and several of us still own GM EVs.
That said, GM has been talking up its massive EV future for years, though it doesn't yet have a whole lot to show. According to CEO Mary Barra, that's all about to come to an end, and rather quickly.
General Motors has big plans to invest a ton of money into the segment. Just last week, the automaker made another major announcement stating that it's committing upwards of $7 billion to ramp up electric car and battery production in Michigan. Barra shared details about the company's recent announcement on CBS Mornings, saying "We want to lead in EVs. Full stop."
Barra should absolutely be saying such things, and she should actually believe they're possible. If she's not forward-thinking and optimistic, that's a bigger problem. Barra has also said on multiple occasions that she's confident GM can top Tesla. She went so far as to say that GM will make it happen by mid-decade, so 2025. Again, we encourage Barra to remain confident and work to make it happen as quickly as possible.
Barra and GM are well aware that in order to catch and beat Tesla, the automaker needs to expand its EV efforts significantly. Moreover, it needs batteries. GM's huge investment in its Ultium platform and battery factories will be integral to its future successes. We're thrilled to learn that the automaker is finally doing precisely what it will take to become a proven leader in the segment.
If GM is able to follow through with its massive EV efforts and meet its timelines, it stands to be one of the leaders in the EV space. However, passing Tesla by 2025 is a lofty goal, especially since Tesla will continue to grow while GM takes critical steps to become more competitive.
According to Automotive News, Tesla dominated the US EV market in 2021, with 72 percent market share. The automaker sold nearly one million vehicles in 2021, and it's guiding for 50 percent growth on the year going forward. A recent article by CNBC about GM's investments reads:
"The new spending is part of a plan to increase GM's North American production capacity to build 1 million electric vehicles by 2025. GM has projected it will sell more than 1 million EVs globally by mid-decade and overtake Tesla as the top US-based seller of electric vehicles during that time frame."
If Tesla sold nearly 1 million vehicles in 2021, and has plans to up that by some 50 percent for 2022, GM's plans for 1 million in 2025 won't likely be enough to overtake Tesla. Tesla's 2021 production came from just two factories. The brand is now producing EVs at a huge factory in Texas, and its other new factory near Berlin is set to open soon.
Even if we don't consider 50 percent growth every year between now and 2025, or really any projected growth whatsoever, GM's 1 million EVs in 2025 will essentially be on par with Tesla's current situation. Are Barra and GM sandbagging here? Do they expect Tesla's sales to plummet by mid-decade? Perhaps we are missing something. Let us know your thoughts on this topic in the comment section below.
