Tesla currently sells the most electric vehicles in the US and has made a profit on them alone since 2021. The second largest electric vehicle producer in the country is Ford, but it has posted losses of more than $1 billion during the first. two quarters of this year in its Model e electric vehicle division. Other pure EV players like Rivian and Lucid aren't making money from their vehicles and are supported by outside investors.
Demand for electric vehicles continues to rise, but their growth rate fluctuates in the US, causing manufacturers to modify their EV launch strategies and add more hybrids to the mix. A big hurdle for electric vehicles is their high costs, but customers can get tax incentives from the federal government of up to $7,500 to help with the purchase. However, the credits are only for electric vehicles made in the country with strict rules on the pricing of vehicles and the sourcing of battery materials, rules designed to remain competitive with China, which is making more electric vehicles at lower prices. .
Only a handful of GM-made vehicles, such as the Chevy Equinox and Blazer EV, qualify for incentives right now, but it is making investments to lower battery prices and get those tax incentives to consumers. One of GM's big new plans is to open a new battery cell development center in 2027 in Warren, Michigan. GM is also building a new $3.5 billion electric vehicle battery plant in Indiana with Samsung SDI, as well as another in Lansing, Michigan, with LG. GM and LG have also increased production at currently operating plants in Spring Hill, Tennessee, and Warren, Ohio.
According The New York Times, GM will collect about $800 million in government subsidies to make electric vehicle batteries in the U.S. thanks to the Biden administration's Inflation Reduction Act.
GM also plans to reduce battery costs by incorporating lower-cost lithium iron phosphate (LFP) batteries in future electric vehicles, as Tesla and Ford already do. The chemistry generally results in a lower overall driving range for EVs after a full charge compared to the more expensive nickel cobalt manganese (NCM) batteries that GM installs in most of its current EV models.
However, GM believes its range won't be affected much: All of GM's electric vehicles today have about 300 miles or more of range, says vice president of communications Darryll Harrison. The edgeand hopes to include “more than 350 miles” of range in its largest LFP vehicles.
GM has one of the most affordable electric vehicles on the market, the Chevy Equinox, which costs less than $30,000 after tax credits. It doesn't have Apple CarPlay for those who care, but neither does Tesla, which sells the ultra-popular Model 3 sedan for about $35,000 after incentives.
