Found this article interesting. Apparently GM says they are now profitable across their EV division and are ready to sell more. Can anyone explain to me how that’s possible, when every $40-$50k GM EV is being firesaled at $100-$200/month leases? Are they really that cheap to produce??
Variable profit positive. LOL.
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Now we know why GM chooses to inflate residuals, rather than give the 45w $7500 as a cap cost reduction. Every penny of that Gov money goes straight to the books. Meanwhile 24months later that $60k Blazer RS EV is worth less than $20k at lease end.
If GM had a separate P&L for EV business like Ford, it would also be billions in the red.
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Aha! Interesting. Yea that makes a lot of sense actually. Keeping that $7500 as profit on the books.
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Other than the $7500 credit, although they seem to make little $ on the new leases, they can milk it again selling returned leases.
Im the new GM “accountant”.
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Some quick math. GM sold 114,432 EVs in 2024. Industry average for 2024 is 45% leasing. GM’s leasing ratio could actually be higher than average.
51,494 x $7500 = $386+ mill from 45w.
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Yea I expect it would be more. I think Tesla single-handedly brings down that average significantly since their leases are hot garbage.
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99% sure they’ll be underwater on those so they’re delaying the loss and buying time which is smart in its own way
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Bailout in 3-4 years?
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As soon as inventory is shipped to dealer, the dealer’s bank account/credit line is debited.
So there’s that
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It most certainly does. Tesla is usually less than 20%. I expect GM’s leasing ratio is somewhere in mid to high 60% range.
According to article below which shows EV crossover lease/loan/cash ratios. The Lyriq is 72% lease, Blazer EV 70% lease, and Equinox 62% lease.
A 65% ratio would put 45w tax credit collection at well over half a billion dollars for 2024.
You can get a sense how important 45w is to these brands.
https://gmauthority.com/blog/2024/12/most-gm-electric-crossovers-are-leased-study-finds/
Who in their right mind would buy an EV today?
The resale value will be atrocious in a year or two as all these cheap leases start getting returned.
They’d have to give it to me for 1/2 off msrp to even think of buying instead of leasing.
I dunno about that, I’ve seen enough automotive business cases to know per unit net revenue minus per-unit COGS isn’t always positive. Especially over there in Detroit.
And people wonder why there’s this cyclical bailout always happening for this industry.
It’ll be a good bargain to pick up those lease return 
EV MSRPs are a huge scam. EV equinox starts at $42k while the ICE equinox starts at $28k and probably can be had with a discount on top of that. I would only consider buying an Equinox EV if was for example around $25k. The MSRP of their whole lineup needs to drop by 40% to be normalized for the quality of vehicle in comparison to the ICE lineup
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EVquinox does start at $34995- notice the ~7k variance…
