Joseph White, Ben Klayman

DETROIT (Reuters) – General Motors Co (NYSE) Chief Executive Mary Barra said Wednesday that the automaker plans on doubling its revenue by 2030 and increasing profits from combustion engines as it develops new electric cars and digital-powered services to keep up with Tesla (NASDAQ) Inc.

If GM can succeed, its annual revenues by 2030 will be approximately $244 billion. This would make it the largest automaker in terms of sales of electric cars in the United States. If GM had a pre-tax profit margin at 12%, this would translate into annual profits up to $29 billion. Sources previously told Reuters that GM would see impressive margin growth and revenue growth.

Barra’s new ambitious financial targets to 2030 will be her latest push in her campaign for investors to convince them that General Motors can be the leader both in technology development and profitability, as General Motors navigates the greatest technology revolution in auto manufacturing since the Ford Model T.

Barra, along with other GM executives, began a 2-day series of presentations for investors at Warren’s Technical Center. They made a case to GM that it can become a “platform innovator from automaker” – a reference Silicon Valley platform companies like Apple Inc (NASDAQ), which has much higher stock valuations than GM or other automakers.

Barra was appointed to the role in 2014. He has nearly doubled the shares’ value since then. Shares traded for $54 at Wednesday’s close.

GM, however, has a market capitalization that is about $78billion less than Tesla’s $773billion market cap. This reflects investor doubts regarding GM’s ability to match Tesla’s powerhouse battery and software capabilities.

Barra and GM President Mark Reuss outlined a plan to transition to all-electric vehicles by 2035. This would be gradual and then accelerate between 2030-2035. The “capable of EV production” will make more than half the GM plants in North America, China, and China by 2030.

AGILE FACTORIES

GM stated that it aspires not to make any electric cars by 2035. Reuss explained that the capacity of GM’s factories to manufacture both combustion- and electric cars will need to be increased to reach the 2035 goal.

Barra and Reuss declared that GM’s existing workforce and factories were assets and not liabilities. Startups that make electric vehicles are creating new factories at great costs. Barra stated that GM can repurpose its plants and employees quickly at a lower cost.

“We want to take the entire workforce along with us,” Barra said.

GM announced Wednesday that it will include an electric version its best-selling North American pickup truck, the Chevrolet Silverado. GM stated that Barra will unveil the electric Silverado during the CES technology fair on Jan. 5. According to suppliers, the vehicle is expected to be released in 2022.

“No one will be able to touch us in the electric truck space,” Reuss said.

The North American market for electric pickups is highly competitive, as petroleum-fueled pickups remain the largest source of profit for Detroit Three.

Ford Motor (NYSE) Co has a chance to surpass GM in the market for its battery-electric Ford F-150 Lightning. Ford also recently announced that it would double the manufacturing capacity of the Lightning at the Dearborn, Michigan factory. Ford intends to produce more F-150 electric vehicles at its Tennessee plant. Startup Rivian started production last month of the electric pickup. https://www.reuters.com/article/rivian-production/amazon-backed-startup-rivian-starts-production-of-electric-pickup-truck-idUSKBN2GA235

Tesla is delaying the launch its futuristic Cybertruck.

GM executives were careful to not make a firm commitment to eliminate internal combustion vehicles before 2035. That will depend on demand from the marketplace.

ELECTRIC DREAMS

GM’s acceptance of electrification won some over in an increasingly climate-conscious investment community. Hedge fund Engine No. 1. This was successfully challenged Exxon Mobil Corp (NYSE 🙂 stated earlier in this year that GM had carved a strong leadership position in battery technology, and was looking forward to a lot more growth.

In part, increased revenues from internal combustion vehicles such as Chevrolet Silverado’s pickup truck and Cadillac Escalade will help to achieve the target of doubling revenue by 2030.

Barra believes that GM has the potential to create profitable, software-driven services that revolve around its internal combustion engine core and attract new customers through electric vehicles such as a Chevrolet Chevrolet crossover wagon, which is $30,000 in price. This revenue goal also reflects Barra’s belief in GM’s ability to build software-driven, profitable services.

Cruise is a key part of the GM strategy. It’s a majority-owned company that provides autonomous vehicle services. Cruise was granted licenses by California last week to start offering rides for passengers. It cannot charge for such rides, however.

GM has also invested in new operations like the BrightDrop ecommerce delivery service and insurance via its Onstar telematics branding. GM stated that it currently manages twenty startups for new businesses.

Throughout the presentations, Tesla’s influence on GM was clear. In its presentation, the company stated that it would offer Ultra Cruise, a hands-free version of its hand-free driver system by 2023. This new version will utilize a LiDAR sensor to place behind the windshield as well as other sensors, which will allow hands-free operation in 95% of all driving scenarios.

Elon Musk, Tesla’s Chief Executive Officer has similar claims about future electric carmaker’s Autopilot technology.