GM says it will double annual revenue by 2030 to reach $ 280 billion digital push to look more like Tesla

DETROIT – General Motors plans to double annual revenue to $ 280 billion by the end of this decade as it switches to all-electric vehicles and diversifies its operations beyond selling cars and trucks .

The automaker on Wednesday announced the new revenue target, along with larger projected operating profit margins of 12% to 14%, ahead of investor presentations in which it will detail exactly how the company plans to do business. achieve these goals through traditional automotive operations and new software. data-driven businesses.

The revenue target is based on a moving average of around $ 140 billion for the automaker in recent years, a company spokesperson said. GM’s revenue last year was nearly $ 122.5 billion, down 10.8% from 2019 thanks in large part to plant closures at the start of the pandemic. coronavirus. Its operating profit margin was 7.9% in 2020.

“When you look at all of the investments we’ve been making for over five years, that’s what positions us today to be truly in execution mode,” said Mary Barra, CEO and President of GM, during a briefing before the event. Later adding: “We have great confidence in our ability to increase our income.”

The two-day investor meeting is expected to provide a “clear strategy” for convincing investors to market the company more as a tech start-up similar to Tesla, which is valued at over $ 750 billion compared to $ 79 billion for GM.

Barra said GM expects much of the revenue growth to come from its new and service businesses, with “moderate growth” from its traditional vehicles and operations.

“Especially in the early days, we see EVs being more in volume, so we see a tremendous opportunity for growth from EVs perspective and then subscription and services,” she said.

Barra declined to disclose a specific breakdown, citing that will perform later today with investors.

GM has also confirmed its intention to rapidly expand its manufacturing of electric vehicles, with more than 50% of factories in North America and China capable of producing the vehicles. Only two GM plants in North America are currently capable of producing electric vehicles, but it has announced plans to transfer at least three more by 2023.

The automaker is investing $ 35 billion in electric and autonomous vehicles by 2025, as it aims to become an all-electric automaker exclusively by 2035.

During the event, GM is also expected to better detail this transition as well as how it plans to market driver assistance systems and autonomous vehicles.

GM confirmed on Wednesday that it will unveil its new electric Silverado at CES in January. He also indicated that a Chevrolet crossover for around $ 30,000 is in the works. GM has not released sales dates for the vehicles.

“No one will be able to touch us in the battery-electric truck space,” GM Chairman Mark Reuss told reporters on Wednesday. “You’ll see we’ve hit the mark on those.”

Regarding autonomous driving technology, GM has announced that it will launch a new hands-free system capable of driving in 95% of scenarios called “Ultra Cruise” in 2023. The system is expected to perform much better than its Super Cruise system. current, which is exclusively available on pre-mapped divided highways.

At the launch, GM said Ultra Cruise will be available on more than 2 million road miles in the United States and Canada. Super Cruise is currently available for over 200,000 miles of road.