Reprieve for ICE vehicle industry good news for SUI have extended the timing of my expectation of the demise of SU
Mary Barra, the CEO of GM has once again pulled the rug out from under the feet of her investors. She has been lying to shareholders for years and it mystifies me how she isn't being charged and put in jail. It just goes to show how toothless the SEC really is as it is powerless to hold the leaders of public companies responsible for misleading shareholders. Billions of dollars get transferred due to misleading statements made by people like Barra who somehow manages to survive on her annual $29 million compensation package.
Barra indicated last fall that GM would be able to raise its annual EV production rate to 1 million vehicles per year in 2025. So far this year, GM has produced 56,000 EV's but only 7,000 of those vehicles were built on their Ultium platform. GM is discontinuing its Bolt this year which makes up the lion's share of its EV sales. On Tuesday, Barra announced that all the EV vehicles that they had planned to introduce this year and in 2024 (including the Silverado and Sierra) were being shelved until late 2025. That announcement pretty much takes GM out of the EV game until 2027 or 2028 in terms of producing any significant volume of EV's
Meanwhile, Ford has announced the cancellation of a $3.4 billion battery plant. No batteries, no EV's. Ford is still losing about $40,000 for every EV that it makes and the company is already faced with ugly math no matter where the UAW negotiations end up.
The USA has remained steadfast in keeping Chinese automakers out of America. Chinese automakers are currently destroying the European automakers and the US doesn't want that to happen. That leaves Tesla and the Korean and Japanese automakers as the only real producers for the USA in the next five years. The Japanese automakers are ten years behind so their impact will be nominal. The Korean automaker Hyudai/Kia will realistically be the only company that will be able to produce any significant volume of EV's for the US market other than Tesla
All of this is good news for SU as the window has probably extended another 5 years. If Trump manages to stay out of jail and the Republicans can somehow pull off a miracle in 2024, the adoption of EV's will likely take even longer. The transition to EV's is going to happen because of the math, but the timing seems further out now.