GM's Barra Confident Automaker Can Surpass Tesla EV Sales
July 19, 2022—Despite a shaky economy and still-ongoing supply chain struggles, not to mention decreased quarterly sales numbers, General Motors CEO Mary Barra still fully believes in her company's resolve to become the leader in electrification.
In a recent interview with the Associated Press, Barra said she is confident the automaker can not only catch up to but actually surpass Tesla in US EV sales by 2025. In order to do that, Barra says the company will focus on more affordable and widely appealing EVs.
“To really get to 30, 40, 50% EVs being sold, you have to appeal to people that are in that $30,000 to $35,000 price range,” Barra told the AP.
As things currently stand, there are a lot of variables currently in the air that GM would need to fall in their favor to make that leap happen. Per the AP's report, GM sold 25,000 electric vehicles last year, which seems paltry compared to the 352,000 that Tesla moved in the same time frame. Not only that, but in addition to the aforementioned struggles facing the auto industry, EVs also still only make up 5 percent of the new vehicle market. Changes are coming, but most Americans have been hesitant to embrace them.
“It’s pretty volatile right now,” Barra said of the economy and overall outlook on EVs. “We’re looking at many different scenarios as any prudent business leader would to make sure we’re ready for whatever, however the situation evolves.”
GM is looking to solve its supply chain issues by consolidating both the number of semiconductor chips it puts in a vehicle and how many tasks those chips perform. As for rising inflation and concerns of an economic recession, focusing on more affordable EVs could also prove to be a boon to the automaker in the long run.
"Barra is hoping to keep prices relatively low, banking on chemistry breakthroughs to cut battery costs, offsetting huge price increases for Lithium and other key elements that make batteries work," the AP report says.