GM raises 2022 guidance on hopes for EVs

General Motors Co. on Thursday raised its guidance for the year, saying it expects its EV portfolio in North American to be profitable in a couple of years as it ramps up EV capacity in the region to more than 1 million EV a year. GM shares, which weaved in and out of losses as the company is holding its investor day in New York, shot 1% higher after the guidance news. GM guided for 2022 adjusted automotive free cash flow to increase to $10 billion and $11 billion, from a previous guidance of $7 billion to $9 billion. GM projected 2022 EBIT-adjusted for the full year will be in a range between $13.5 billion and $14.5 billion, compared to a prior guidance of $13 billion and $15 billion. Revenue is expected to grow at a 12% compound annual rate through 2025, reaching more than $225 billion as EV volumes and software revenue grow, GM said. Revenue from EVs is expected to be more than $50 billion in 2025, it said. The auto maker expects to build 400,000 EVs in North America from 2022 through the first half of 2024 and grow capacity to 1 million units annually in North America in 2025. GM pegged its total capital spending at around $11 billion and $13 billion a year through 2025, "funded by ongoing healthy cash flows," the company said.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.