Sit tight as the runner-up in the U.S. electric vehicle market! General Motors challenges Tesla with a dual-line layout
General Motors announced that it has become the second largest manufacturer of electric vehicles in the United States, although Tesla still holds the top position. General Motors emphasized that its diversified product matrix in the electric vehicle sector is its core competitiveness. With fluctuations in electric vehicle demand and the upcoming cancellation of new energy vehicle subsidies, the market faces uncertainty. Analysts predict that new energy vehicle sales will reach a record high in the third quarter of 2025, but there may be a significant decline in the fourth quarter
According to Zhitong Finance APP, although Tesla (TSLA.US) still holds an absolute advantage at the top of the U.S. electric vehicle manufacturers list, General Motors (GM.US) claimed on Tuesday that it has successfully seized the second position in the industry, emphasizing its "inherent advantages" in the electric vehicle sector.
During the quarterly earnings call held on Tuesday, GM executives stated that the company is fully committed to enhancing the profitability of its electric vehicle business. When asked how to achieve this goal in light of Tesla facing similar challenges, Chief Financial Officer Paul Jacobson pointed out that GM's diversified product matrix spanning both gasoline and electric vehicles is its core competitive advantage during periods of fluctuating electric vehicle demand.
Jacobson stated, "Tesla's minimalist product line and economies of scale are indeed commendable. They perform excellently in several market segments and have achieved considerable profits, which we respect. However, this also leads to their excessive exposure to the volatile market demand."
Currently, General Motors has 12 electric vehicle models, while Tesla only offers 5. It is noteworthy that Tesla never discloses specific model sales data, opting instead for bundled reporting.
This statement comes at a time when the automotive industry is facing a dramatic shift in electric vehicle demand. With the new tax reform bill from Trump set to eliminate the $7,500 subsidy for new energy vehicles and the $4,000 credit for used cars after September 30, market uncertainty is further exacerbated.
Data from Cox Automotive Consulting shows that U.S. sales of new energy vehicles are expected to decline by 6.3% year-on-year in the second quarter of 2025, marking the third recorded negative growth. However, compared to the first quarter, there is still a slight increase of 4.9%. Senior analyst Stephanie Valdez believes this may be the beginning of a buying spree before the subsidy elimination.
Valdez predicts that the third quarter of 2025 will set a new record for new energy vehicle sales, but as subsidies exit, the market will experience a "cliff-like drop" in the fourth quarter, entering a "new normal."
General Motors CEO Mary Barra acknowledged that the growth rate of electric vehicles is below expectations but reiterated at the earnings call, "We firmly believe that electric vehicles will eventually become profitable, and this has always been our guiding North Star."
A Barclays research report on July 17 pointed out that amid fluctuating demand, Tesla's core business continues to weaken, with its autonomous driving and Robotaxi concepts becoming the focus of market attention. In the second quarter, Tesla's delivery volume was approximately 384,000 units, a year-on-year decline of 14%, marking a downward trend for two consecutive quarters.
Nevertheless, Tesla remains the absolute leader in the current electric vehicle market. General Motors' electric vehicle sales for the quarter reached 46,300 units, more than doubling from 21,900 units in the same period last year, but only accounting for a fraction of its total sales of 974,000 units in the second quarter. Cox data shows that GM's electric vehicle sales of 78,000 units in the first half of 2025 are already more than double that of the same period in 2024.
Jacobson emphasized that GM has embedded the ability to flexibly switch between electric and gasoline vehicle production in its manufacturing system by synchronously investing in both electric and gasoline vehicle capacities. "This ability to adjust the production ratio of electric and gasoline vehicles based on market demand at any time is our inherent advantage. When electric vehicle demand weakens, we can increase gasoline vehicle production to share the factory operating costs He used General Motors' recent investments in the Spring Hill plant in Tennessee and the Fairfax plant in Kansas as examples to illustrate this strategic layout. Last month, General Motors announced it would invest $4 billion to upgrade several U.S. plants, simultaneously increasing the production capacity of both fuel vehicles and electric vehicles.
General Motors also revealed on Tuesday that Chevrolet has jumped to second place in the electric vehicle brand rankings, while Cadillac ranks fifth
