One of the largest traditional automotive companies has put forth a plan to increase its position in the electric vehicle industry, something that has drawn praise from President Joe Biden.
The company was criticized by Elon Musk for the low number of electric vehicles it produces, which could be further fueled with a recent report on how many units of a popular EV it is making per day.
What Happened: Automaker General Motors Company GM is slowly ramping up production of its Hummer EV, according to a new report from The Wall Street Journal.
Despite a waiting list of over 77,000 units, General Motors is making around 12 Hummer EVs per day. The report calls the production rate “unusually slow for a vehicle in production for more than six months.”
The vehicles are made at a renovated Detroit factory that had a $2.2-billion facelift to make the GM electric truck. A spokesperson said the production is on track and the ramp up has been slow due to ensuring quality of new technology.
Production of the Hummer EV will “increase sharply” in the second half of 2022, according to the spokesperson.
“Our ability to satisfy that demand is only going to improve as we bring on vertical integration of battery cell production,” the GM spokesperson told The Wall Street Journal. “You can expect to see hundreds of deliveries grow to thousands later this year.”
Related Link: General Motors Updates Guidance Following Supply Chain Disruptions: What Investors Need To Know
Why It’s Important: The low production figure for the Hummer EV by General Motors may add to the take by Tesla Inc TSLA CEO Musk that GM being called the EV leader is “next level insanity.”
Biden congratulated GM CEO Mary Barra on “leading the revolution,” a comment to which Musk has taken exception.
Tesla reported over 300,000 vehicles produced in the fourth quarter of 2021 compared to 26 electric vehicles produced by General Motors in the same quarter.
“That’s what they put in their earnings report,” Musk said.
A production rate of 12 per day works out to around 1,080 per quarter and 4,380 per year.
Pickup trucks are among the top selling vehicles each year, and General Motors getting behind in production could be a setback in what is expected to be a highly competitive market for electric pickup trucks.
Ford Motor Company F has an electric version of the top selling F-150 truck called the F-150 Lightning. The report says Ford is making around 150 Lightnings daily.
Rivian Automotive RIVN has the R1T electric truck. Rivian produced 2,553 R1T trucks in the first quarter.
The Hummer EV pricing range puts the truck at the higher end of the three models mentioned above.
There of course is the highly anticipated Cybertruck electric truck coming from Tesla the future. Musk recently said the truck will enter production in the middle of next year.
General Motors is expected to release electric vehicle versions of its Silverado pickup truck and Blazer SUV in the coming years, which will help with its plan to have 30 electric vehicle models by the year 2025.
The 2024 Blazer EV will be unveiled on July 18 and is expected to be available for sale in the spring of 2023.
On Friday, General Motors said its second-quarter wholesale volumes were impacted by supply constraints. The company said it will hold back around 95,000 vehicles that are missing certain components from its inventory until they are completed. The company reiterated its full year guidance.
GM Price Action: General Motors shares were trading 1.32% higher at $32.18 Friday versus a 52-week range of $30.65 to $67.21.
Photo courtesy of GM.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
