General Motors Co. GM -0.75% set one of its most ambitious financial targets in years on Wednesday, telling investors it aims to more than double revenue by 2030 with an influx of new battery-electric models and auto-related services.
The Detroit automaker also took direct aim at Tesla Inc., TSLA 0.28% saying it plans to take the lead in electric-vehicle sales in the U.S., without committing to a timetable. As part of the push, GM said it would release a new electric SUV priced at about $30,000, undercutting the cheapest version of Tesla’s Model 3 sedan.
GM executives outlined their longer-term goals ahead of a daylong event for investors and analysts at the company’s research center in suburban Detroit.
GM said it also aims to boost operating margins to 12%-14% by 2030, from 7.9% last year, by rolling out new models and services that can help bolster its bottom line. GM said it expects revenue to double to $280 billion, from a five-year average of about $140 billion.
GM shares fell less than 1%.
Declaring such long-range financial goals is unusual for the car company and underscores its effort to convince investors to value it more like a tech-oriented business than a manufacturer.
GM executives have been trying to make the case that it is evolving into a technology company and can boost revenue and profit by not only churning out cars but also offering services that generate recurring revenue.
Wall Street has shown enthusiasm for GM’s electrification plans over the past 18 months, often sending shares sharply higher on electric-vehicle news. GM shares snapped back from an all-time low amid pandemic uncertainty in March 2020 to rise 14% last year. They were up 30% this year through Tuesday’s close.
On Monday, activist investor Engine No. 1, which led a successful proxy fight with Exxon Mobil Corp. , publicly backed GM’s plan to transition to electric vehicles. The firm’s founder, Christopher James, said he isn’t pushing for change at GM but rather wanted to endorse its long-term strategy.
Still, its valuation of around $79 billion remains about one-tenth that of Tesla and there are numerous challenges ahead, including uncertainty about buyers making the switch to electrics. Plug-in cars remain more expensive relative to gas-powered vehicles, and auto executives have acknowledged that demand in coming years will hinge in part on government incentives.
Some consumers still worry about their ability to find enough places to charge. Analysts also have raised concerns about a potential shortage of battery capacity as major auto makers rush to go electric.