The director of General Motors announced overcoming the crisis and maintaining plans for electric cars

If GM begins to profit from sales of battery-powered cars, the company will become the second American automaker after Tesla to do so, recalls The New York Times.

GM’s electric vehicle sales actually increased toward the end of the year. And we can expect further growth with a new model priced under $30,000 with tax credits: the Chevy Equinox.

The Chevy Equinox and Blazer EV are the models that qualify for government tax credits of up to $7,500 (vehicles must be American-made). The car manufacturer is betting heavily on this program, because the high cost of electric cars for consumers is the main obstacle to the development of this area.

Another issue, supply chain disruptions in 2023, is largely resolved, according to Mary Barra. Additionally, GM intends to open a new battery development center by 2027 in Michigan and is building new battery production plants: one with Samsung SDI worth $3.5 billion in Indiana, another with LG in Michigan.

GM will also receive about $800 million in government subsidies to produce electric vehicle batteries in the United States thanks to the Inflation Relief Act, according to The New York Times. Additionally, the company plans to reduce battery costs by introducing cheaper lithium iron phosphate (LFP) solutions in future electric vehicles, as Tesla and Ford are already doing.

Tesla now sells the most electric vehicles in the US, and will even make a profit on them starting in 2021, but this comes at the expense of the most extensive network of charging stations. GM can now access it via an optional NACS-CCS adapter and is also investing in its own charging stations with its partner EVgo.

The country’s second largest electric vehicle manufacturer, Ford, is also no longer making a profit from them, and Rivian and Lucid are holding their own only thanks to outside investors.