General Motors (GM) EV push will soon pay off. GM investors are gearing up for an update from CEO Mary Barra this week that includes a mention of the automaker turning a profit on its electric vehicles in 2025.
As the race to claim EV market share heats up, many automakers are taking significant losses to scale production. For example, Rivian posted a negative gross profit of nearly $1 billion in the third quarter as the young EV maker builds its manufacturing capabilities.
Meanwhile, the company made a comment in its Q3 letter to shareholders that resonates across the industry with the electric vehicle transition underway, stating:
As we produce vehicles at low volumes on production lines designed for higher volumes, we have and will continue to experience negative gross profit related to labor, depreciation, and overhead costs.
Start-ups and legacy automakers look to mirror the success Tesla is having with pure EV models. Tesla’s automotive gross profit (percent of profit of each new vehicle sale) was 27.9% in Q3.
Meanwhile, although GM’s revenue reached a record $41.9 billion in Q3, its margins were much lower, and even more so with its electric vehicles.
GM posted automotive revenue of $38.7 billion, yet the cost to make and sell these vehicles reached $35.6 billion, for a gross profit of $3.1 billion or just over 8%.
As GM scales EV production, the company expects to continue taking a loss in that segment. However, by 2025, the automaker expects this to change – this is the same year Mary Barra is confident GM will catch Tesla, when the company is set to turn a profit on its electric vehicles.
electric Chevy Bolt EUV (Source: Chevrolet)
GM to earn a profit on electric vehicles in 2025
According to a report from Bloomberg, sources familiar with the matter claim GM is planning to update investors on November 17 (GM Investor Day) that the company expects its electric vehicles will turn a profit in 2025.
Mary Barra will discuss the automaker’s battery investments and how it plans to build the program. However, with GM’s plans to provide an “EV for everyone” on its way to becoming one of the largest electric vehicle makers, investors are eagerly awaiting how GM will do so profitably.
Well, according to sources who did not want to be named because the presentation is not yet public, 2025 will likely be the year GM will make electric vehicles for a profit.
After several years of building its production capabilities and supporting supply chains, GM is ready to start earning a profit on its EVs. GM, together with LG, have four battery plants coming online in the US, with at least three by 2024.
With several highly anticipated EV models coming from GM next year, including the $30,000 Chevy Equinox EV and electric Silverado pickup, the automaker expects to significantly ramp production volume.
At the same time, GM still expects its electric vehicles to generate lower margins than their ICE counterparts as supply chains and production ability transitions over. David Whiston, a Morningstar analyst, commented, stating:
GM won’t sell at the prices of Teslas, so maybe they won’t match the profits. But they should be able to show good margins. If Tesla can do it, there’s no reason GM, Ford and others can’t do it. They’re just behind on product lineup and manufacturing.
Mary Barra said on the company’s Q3 earnings call this week’s investor update will “go deeper into the second phase of our EV growth strategy.” Stay tuned for updates!
Electrek’s Take
I would expect GM to start generating a profit on its electric vehicles by 2025, with the company going all in on electric. However – and this is big – it will also be costly for GM to wind down sales and operations of its ICE vehicles.
New and used gas-powered vehicles will likely continue seeing their prices drop as electric vehicles gain market share. As electric vehicles and the supporting infrastructure becomes cheaper and more accessible, ICE values will likely fall.
Many automakers, like GM, have financial divisions that rely heavily on the residual value of their vehicles. If auto prices continue slipping, GM won’t be able to sell its cars near what it valued them, which could result in substantial losses.
What does everyone think? Will GM make EVs profitably in 2025? Let us know in the comments.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes a new ONYX RCR 80V electric moped, new lightweight e-bike motors, Aventon’s powerful update, California cops catching illegal e-bike riders with drones, a super lightweight new e-bike from Dahon, and more.
Today’s episode is sponsored by CYCROWN, an e-Bike company born from a passion for cycling. Its lineup now includes the new CYCROWN Dremax – a high-performance urban commuter e-bike now on sale in the US and Canada. Use Electrek50 to save $50 off your new eBike when you order.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
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While much of the Western world is still figuring out how to get more people on electric bikes, China just flipped a switch, and the results are staggering. Thanks to a generous nationwide trade-in program rolled out around six months ago, China has seen an explosive surge in electric bicycle sales, with over 8.47 million new e-bikes hitting the road in the first half of 2025 alone.
The program, which offers subsidies to riders who trade in their old, often outdated electric bikes for newer, safer, and more efficient models, has sparked a new e-bike sale boom in a country already dominated by e-bike travel. In major provinces like Jiangsu, Hebei, and Zhejiang, over one million new e-bikes were sold in each region in just six months. That’s a tidal wave of e-bike sales.
The incentives vary depending on location and the model being traded in, but for many consumers, the subsidies cover a substantial portion of a new e-bike’s price – enough to turn a “maybe next year” purchase into a “right now” upgrade. And these aren’t just budget bikes either. The program has driven demand for higher-quality models with better batteries, safer braking systems, and more reliable electronics, accelerating both adoption and innovation across the industry.
The move has proven successful in replacing the millions of older models with lower-quality lithium-ion batteries that had posed safety risks around the country. Instead, China has pushed for higher-quality lithium-ion batteries, a return to a newer generation of higher-performance AGM batteries, and even interesting new sodium-ion battery options.
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Most e-bikes in China look more like what we’d consider seated scooters
According to China’s Ministry of Commerce, more than 8.4 million consumers have participated in the e-bike trade-in program so far, contributing to a sales increase of 643.5% year-over-year and more than doubling sales month-over-month. Meanwhile, production of new electric bicycles rose by nearly 28%, as manufacturers scrambled to meet demand. The sales boosts have already been seen in the financial reports of major industry players like NIU.
And it’s not just the big players benefiting – over 82,000 small independent e-bike dealers reported average sales increases of ¥302,000 (around US $42,000), giving a serious boost to local economies.
What’s particularly striking here is how fast this happened. The program was officially launched late last year as part of a broader effort to stimulate domestic consumption and phase out outdated vehicles and appliances. But while most analysts expected gradual growth, the e-bike sector responded much more quickly. In less than a year, the trade-in subsidies have reshaped the electric bicycle market, creating a consumer-driven boom that shows no signs of slowing.
For those of us watching from outside China, it’s hard not to wonder what might happen if other countries tried something similar. While most families in Chinese cities already own an electric bike and thus see this as an opportunity to trade it in for a newer model, Western countries like the US are still figuring out how to stimulate commuters into buying their first e-bike.
It’s too soon to know exactly how long the boom will last or whether the momentum will carry into 2026 and beyond. We’ve seen bicycle industry bubbles grow and burst before. But one thing’s clear: with the right incentives, even modest ones, it’s possible to ignite real, large-scale change. China just proved it with nearly 8.5 million new e-bikes to show for it.
And if you’re wondering what it looks like when a country takes electric micromobility seriously, this is it.
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Today was the official start of racing at the Electrek Formula Sun Grand Prix 2025! There was a tremendous energy (and heat) on the ground at NCM Motorsports Park as nearly a dozen teams took to the track. Currently, as of writing, Stanford is ranked #1 in the SOV (Single-Occupant Vehicle) class with 68 registered laps. However, the fastest lap so far belongs to UC Berkeley, which clocked a 4:45 on the 3.15-mile track. That’s an average speed of just under 40 mph on nothing but solar energy. Not bad!
In the MOV (Multi-Occupant Vehicle) class, Polytechnique Montréal is narrowly ahead of Appalachian State by just 4 laps. At last year’s formula sun race, Polytechnique Montréal took first place overall in this class, and the team hopes to repeat that success. It’s still too early for prediction though, and anything can happen between now and the final day of racing on Saturday.
Congrats to the teams that made it on track today. We look forward to seeing even more out there tomorrow. In the meantime, here are some shots from today via the event’s wonderful photographer Cora Kennedy.
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