General Motors Surpasses Earnings Expectations in 2022 with Strong 2023 Outlook and $650M Lithium Investment

General Motors, the leading U.S. automaker by sales, exceeded fourth-quarter earnings projections, culminating a remarkable 2022 performance.

General Motors reported fourth-quarter earnings per share (EPS) of $2.12, surpassing analyst predictions by 33%. Quarterly sales surged 28.4% to $43.11 billion, outperforming expectations and driving the company's full-year adjusted earnings before interest and taxes (EBIT) to a record $14.5 billion in 2022.

CEO Mary Barra attributed this success to growing consumer demand and enhanced supply chain stability. She expressed confidence that this momentum will continue into 2023, forecasting adjusted EBIT between $10.5 billion and $12.5 billion and full-year EPS ranging from $6 to $7, both surpassing market expectations.

Barra highlighted that GM’s Ultima electric vehicle (EV) platform is poised for a breakthrough year. The company is accelerating production of existing EV models and preparing to launch new ones, aiming to manufacture 400,000 EVs in North America from 2022 through mid-2024.

Lithium Mining Investment to Power EV Growth

As part of its EV expansion strategy, GM announced a $650 million investment and supply agreement with Lithium Americas to develop the Thacker Pass lithium mine in Nevada, the largest in the U.S. and third-largest globally. Lithium is a critical component for EV batteries, securing GM’s supply chain for future electric vehicle production.

Following these announcements, General Motors (GM) shares rose over 7%, while Lithium Americas (LAC) stock surged 12%, reflecting investor confidence in the EV market and GM’s strategic initiatives.

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