General Motors’s goal of producing 1 million electric vehicles by the end of next year may be in jeopardy.
Transcript:
CONWAY GITTENS: Here’s what we’re watching on TheStreet today.
Blue chips were the belle of the ball after better-than-expected earnings from the financial sector boosted sentiment. Even UnitedHeathCare managed to rally even though sales came in below forecasts. Investors were also upbeat after June retail sales surprisingly came in flat. Investors are betting with greater than 90 percent certainty an interest rate cut is coming in September.
Markets now look ahead to Wednesday’s summary of economic conditions from the Fed, and financial updates from United Airlines and Johnson and Johnson.
In other news: General Motors is joining the list of high-profile companies to recently scale-back clean energy expectations. The automaker says it’s very unlikely it will be able to reach its goal of having the ability to produce 1 million all-electric vehicles by the end of 2025.
Google recently announced that it won’t meet long-term zero-emission targets.
GM CEO Mary Barra told CNBC “We won’t get to a million just because the market is not developing, but it will get there.”
Automakers are being forced to rethink EV production plans with demand not as robust as projected years ago. EV sales are still climbing but remain a fraction of total auto sales. As a result, GM has scrapped most of its EV target and production plans.
Investors are eager to hear more about GM’s EV strategy when quarterly results are released July 23rd.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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