GM announced fourth quarter and full-year earnings yesterday. The company’s net income was $2.8 billion for the quarter and $6.4 billion for the year. This was accomplished during a period that GM and most automakers shuttered their factories due to the Covid crisis early in the year. These earnings are among the best performance of any legacy automaker. And given GM’s leadership position in EV and autonomous technology development, this performance strengthens the company’s ability to accelerate their technology investments.
GM has committed to spending between $9 billion and $10 billion in capital expenditures in 2021. $7 billion of that spending is dedicated to EV and AV development which leadership knows is the future of the company. This is why I’ve included GM as part of the taGMan companies destined to prosper in an accelerating TaaS world. Investors are beginning to reward the company. For the year, GM stock is up 31.8%. Tesla (another taGMan company) is up only 14.1% for the year.
Below is a reminder of the recent investments the company has made in its EV and AV future.
Launched the Cruise autonomous subsidiary after acquiring the company in 2016. Cruise, now valued at $30 billion, secured additional investments from Microsoft, SoftBank, and Honda
Launching 30 new EVs globally through 2025
Revealed the Cruise Origin, an all-electric autonomous vehicle designed for transportation-as-a-service applications
Developed a multi-vehicle modular propulsion system for electric vehicles powered by a new Ultium battery technology
Building a new battery production facility in a joint venture with LG Chem
Announced a new division (BrightDrop) to electrify the delivery of goods and services. FedEx has already signed-on as a customer and will utilize a new electric commercial vehicle designed and produced by GM (EV600)
Entered into a long-term strategic relationship with Microsoft to accelerate the commercialization of self-driving vehicles using cloud and edge computing
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