GM believes it will stop losing money on electric vehicles in 2025 as higher margin vehicles arrive

General Motors is losing money on every electric vehicle it sells, but the company says it’s on track to generate mid single-digit pretax profit margins in 2025 as it produces more higher margin EVs, works out kinks in battery manufacturing and sees battery cost reductions. That’s what Chief Financial Officer Paul Jacobson told analysts at a conference in New York Thursday, conceding that the company has struggled to ramp up EV manufacturing. GM has had trouble with machinery that stacks battery cells into modules at its joint venture plant in Ohio. The guidance on Thursday of mid single-digit profit margins in two years is a little better than the low-to-mid single digits the company has estimated in the past. The new figure includes benefits from U.S. clean energy tax credits.