Business Maverick: GM Beats on Profit and Sales, Shrugs Off EV Price War Worry

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General Motors Co. expects its earnings momentum to grow this year on higher output, shrugging off concerns that margins will be eroded by a price war for electric vehicles.

The Detroit automaker sees continued demand for its highest profit margin SUVs and trucks and increased vehicle production levels as pandemic-era supply chain problems fade. Mary Barra, GM’s chief executive officer, dismissed concerns about price cuts after Tesla Inc. and Ford Motor Co. reduced EV sticker prices.

In a letter to shareholders, she emphasized that strong earnings growth in 2022 will carry over into this year, noting GM’s forecast for adjusted earnings before interest and taxes is in a range of $10.5 billion to $12.5 billion, or $6 to $7 a share — above analysts’ projections for $5.70 per share.

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