GM CEO Mary Barra has stated that the company will not lower the prices of their electric vehicles (EVs), even after Tesla recently cut prices of their EVs by 20%. This move goes against Ford’s recent decision to reduce prices on their Mach-E.
GM recently released their Q4 financial results, which surpassed expectations with a 28% YoY increase in revenue and a 23% rise in revenue from 2021 to 2022. During a call with analysts, Barra attributed the decision to maintain current prices to the high demand for GM’s EVs.
“When we look at our strong product portfolio and the interest that we have at the prices that we’ve already announced, we feel that we’re well positioned. We think right now we’re priced where we need to be,” Barra said (via MarketWatch)
General Motors (GM) offers four electric vehicles (EVs) to customers: the Bolt EV and EUV, Cadillac Lyriq, and the GMC Hummer EV.
See also: Electric vehicles will be profitable by 2025, GM CEO Mary Barra says
While the Bolt EV and EUV are among the most affordable EVs available, the Lyriq and especially the Hummer EV come with a high price tag, reaching above $100,000 based on the configuration.
Despite the high demand for these vehicles, GM has struggled to keep up with production, with only 122 Lyriqs and 854 Hummer EVs delivered in 2022.
However, GM is planning to expand its EV portfolio in 2023 with the introduction of the Silverado EV (with 170,000 reservations), followed by the Chevy Blazer EV and Chevy Equinox EV. The challenge for GM will be to produce these vehicles in significant quantities in 2023.
