Investors are eager to learn more about General Motors’ manufacturing of electric vehicles and an employee buyout program, which is a crucial component of its goals to reduce structural costs by $2 billion by the end of 2024. General Motors is scheduled to release its first-quarter financial results on Tuesday. Paul Jacobson, the chief financial officer of General Motors, said that the first quarter’s performance met expectations, with sales increasing by 18%. Despite an 8.3% growth in sales, analysts forecast that the results would show a significant year-over-year fall in adjusted earnings per share. According to the projections, car earnings are returning to more typical levels compared to last year’s inflated levels, which were brought on by limited supply and high demand.

According to GM’s prediction, it would have a net income of between $8.7 billion and $10.1 billion in 2023. Additionally, it predicts adjusted profits per share of between $6 and $7, and adjusted earnings before interest and taxes ranging from $10.5 billion to $12.5 billion. The adjusted automotive free cash flow target range is $5 to $7 billion. Approximately 5,000 workers globally chose to participate in the employee buyout program, and the business expects to record a $1 billion charge during the first quarter as a result.

GM, Samsung SDI plan to build new U.S. battery plant -sourcesIn light of larger economic worries, investors are anticipated to be cautiously optimistic over the car industry’s first-quarter profits. The quarter seems to be “solid,” according to Morgan Stanley analyst Adam Jonas, but overly optimistic projections would not sit well with investors concerned about the macroeconomic climate. Wall Street is keeping an eye on the EV sector, specifically how quickly General Motors is producing its vehicles in comparison to competitor Tesla, whose recent price reduction have garnered media attention.

General Motors’ stock has not done well this year, increasing by just around 2%. They decreased from a 52-week high of $43.63 per share on Monday, closing at $34.29 per share.


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