GM – Market expectations are for Uniform ROA to remain muted, but management is confident about Ultium, Super Cruise, and the Chevy Silverado

• General Motors Company (GM:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 13.7x Uniform P/E. At these levels, the market is pricing in expectations for profitability to remain muted, but management is confident about their Ultium platform, Super Cruise, and the Chevy Silverado.
• Specifically, management is confident their record Q1 performance was driven largely by robust product demand and success in GM Financial. In addition, they are confident they will realize battery cost reductions with Ultium, that the Ultium Cells’ plant construction will begin immediately, and that they have signed seven major charging networks for Ultium Charge 360. Furthermore, they are confident the Vehicle Intelligence Platform (VIP) enabled a large-scale deployment of Super Cruise, that Super Cruise received positive reception, and that Factory ZERO will build the GMC HUMMER EV SUV and the Chevy Silverado full-size electric pickup truck. Also, they are confident that Chevrolet’s Silverado exceeded high expectations and that it will be a high-volume entry in one of the most popular and competitive segments in the industry.