GM Reports Strong Fourth Quarter Profit and Record Revenue; invests $650 million in lithium mine

Shares of General Motors (GM) jumped early Tuesday as the automaker reported higher fourth-quarter earnings, driven again by record revenue and strong demand.

For the full year, the company posted profits of $14.5 billion, close to its high forecast, amid what Chief Executive Officer Mary Barra called “strong customer demand” in a letter to CEOs. shareholders.

For the quarter, GM reported:

On the profitability front, GM reported adjusted EBIT (earnings before interest and taxes) of $3.8 billion, beating estimates by $3.2 billion. GM also reported full-year adjusted EBIT of $14.5 billion, on the high end of its previous guidance of $13 billion to $15 billion.

“GM led the US industry in total sales and achieved the largest year-over-year increase in market share of any OEM, thanks to strong demand for our products and improved supply chain conditions,” Barra said in the your letter to shareholders.

GM shares rose as much as 4.5% in premarket trading on Tuesday.

On the EV front, GM said the Chevrolet Bolt EV and Bolt EUV had record sales for 2022, which demonstrated “the importance of affordable EVs in our portfolio.” Affordable EVs will be at the forefront in 2023, with rivals Tesla and Ford slashing prices for select EV models this year alone.

GM also reportedly is the number one truck leader in the market, selling 1.1 million full-size pickups, midsize pickups and full-size SUVs.

AUSTIN, TEXAS - JANUARY 05: GMC pickup trucks are displayed for sale on a lot at a General Motors dealership on January 05, 2023 in Austin, Texas.  General Motors has claimed the title of the best-selling automaker in the United States after outselling Toyota in 2022. GM reported that the company sold about 2.7 million vehicles last year, while Toyota sold just over 2. .1 million vehicles.  (Photo by Brandon Bell/Getty Images)

GMC pickup trucks are displayed for sale on a lot at a General Motors dealership on January 05, 2023 in Austin, Texas. (Photo by Brandon Bell/Getty Images)

For 2023, GM projects Adjusted EBIT of $10.5 billion – $12.5 billion and Adjusted EPS of $6.00 – $7.00.

“We expect our momentum to help us deliver strong results once again in 2023,” Barra said.

GM also reportedly acquired a $650 million stake in Lithium Americas to develop the largest known lithium mine in the United States, located in Nevada. GM says the amount of lithium mined and processed will support 1 million electric vehicles a year.

This story is developing.

Pras Subramanian is a reporter for Yahoo Finance. You can follow it Chirping and go Instagram.

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