General Motors (GM) has taken the lead in the electric vehicle (EV) industry by having the highest number of EV models eligible for the full $7,500 tax credit. The company’s entire range of electric vehicles under the MSRP cap will qualify for the full EV tax credit in 2023. This comes after GM sold over 20,000 fully electric models in the first quarter of 2023, overtaking Ford to become the second-largest EV maker in the US.
Mary Barry, GM’s CEO, believes that the automaker is distinct from other traditional OEMs, and this year will be the year to demonstrate it. A key driver of Barry’s confidence is GM’s scalable Ultium EV platform and battery venture. The Ultium platform is the backbone of GM’s EV strategy, capable of powering various models across multiple price points at scale, from compact EVs like the Chevy Equinox to fully electric commercial vans like the Brightdrop.
Moreover, battery supply has become a production constraint for many automakers, including Ford. To address this, GM is building at least three battery cell plants in collaboration with LG Energy. The Warren, Ohio, facility started producing battery cells in August, and the Spring Hill, Tennessee, plant is expected to begin production later this year. The Lansing, Michigan, plant is currently under construction and expected to come online in late 2024. GM anticipates having over 130 GWh battery cell capacity when all three facilities are at full capacity.
GM’s investments are already paying off, with the company expecting all its electric vehicle models under the MSRP cap to qualify for the full $7,500 EV tax credit this year. The eligible models include the Cadillac Lyriq, Chevy Bolt EV, Chevy Bolt EUV, Chevy Equinox EV SUV, Chevy Blazer EV SUV, and Chevy Silverado EV. GM says fleet customers, including those for Brightdrop and the new Chevy Silverado EV, will be eligible for the $7,500 commercial tax incentive.
In addition to the Bolt EV/EUV, which has been on the market for several years, Chevy will launch several new electric vehicles this year. The all-electric Chevy Blazer EV will be available later this spring, while the Chevy Equinox EV and Chevy Silverado EV pickup are expected to be available this fall. According to sources familiar with GM, the dealer inventory of the Chevy Bolt EV was low at the start of this month, with only 174 models available at the time. GM sold 19,700 Chevy Bolt EV/EUV models in the first three months of 2023, with the Bolt EV starting at $26,500 and the Bolt EUV at $27,800.
The short inventory is due to soaring demand for affordable EVs, as evidenced by GM’s first-quarter delivery totals. To meet demand, GM plans to ramp up Chevy Bolt EV/EUV production to 70,000 units this year, representing a 59% increase from the 44,000 models produced last year. With its Ultium EV platform and battery venture, GM is poised to lead the EV industry’s transformation and meet the growing demand for sustainable transportation.
