It certainly depends on where the US market is headed. Automobile sales fell off a cliff in October. Not just EV, not just ICE. Interest rates via the Fed are finally having their intended effect — to slow the economy. Which means slowing automobile sales. GM and others are trying to gauge which way the wind will blow here. Does the US market continues to tighten? What happens to fuel prices? What happens to regulatory pressures? What happens in next year’s political elections that may affect regulatory pressures?
GM is circling their wagons in preparation for what they must feel will be a contraction in the market, and resulting margin pressures.
Just because you believe in a product segment, you cannot continue to go all-in with your expensive bets… there’s still a business to run. I realize fans want huge bets and to push forward their agenda no matter what. We shall see who is right. GM makes billions… and not because they’re stupid.
Tesla has very efficient electronic components. Cumulative tiny gains in the entire system. Tesla also focuses on frictional efficiencies (drivetrain and rolling) and aerodynamics. And even weight. It’s a systemic approach and they do a good job. The results are there. Yes, they also lean on EPA loopholes for stated range, But still.