General Motors, the biggest U.S. automaker by sales, posted better-than-expected fourth quarter results that lifted full-year earnings to record levels, and issued a powerful 2023 outlook.
GM reported earnings per share (EPS) of $2.12, a third better than analysts’ forecasts. Sales rose 28.4% to $43.11 billion, also above estimates. That lifted full-year earnings for 2022 to a record $11 billion, up from $10.4 billion in 2021.
CEO Mary Barra credited the gains to increased demand for GM’s vehicles and improved supply chain conditions. She added the company believes its momentum “will help deliver strong results once again in 2023,” with adjusted earnings before interest and taxes (EBIT) of $10.5 billion to $12.5 billion. GM anticipates full-year EPS of $6 to $7, exceeding expectations.
In addition, Barra indicated that GM’s Ultima electric vehicle (EV) platform will have a “breakout year,” and the carmaker is accelerating production of its current EVs and is set to launch new models. She explained that GM is on track to produce 400,000 EVs in North America from 2022 through the first half of 2024.
Lithium Mine Deal
GM also announced a $650 million investment and supply agreement with Lithium Americas to develop the Thacker Pass mine in Nevada, the largest lithium mine in the U.S. and third-largest in the world. Lithium is a key ingredient in batteries used to power EVs.