Kiran C

• Kiran C
• Sep 10, 2025
• Car News

The electric vehicle market is picking up and while Tesla has been the sole conversation, a legacy automaker is emerging with incredible momentum. General Motors just broke a new monthly sales record for its electric vehicles and secured its place as the second-largest EV seller in the U.S.

EV sales have more than doubled year-over-year in Q2 of 2025, and GM is showing that it can execute on a very solid plan.

Here are the three key reasons for how the company is experiencing success.

1. Affordable EVs Broaden the Market

GM identified this hurdle and solved it by smartly positioning itself in the affordable EV space. The Chevrolet Equinox EV has a reasonable starting price of $33,600 (before incentives), and an affordable option that can be compared to a Tesla Model Y.

• Competitive retail prices that are favorably positioned, such as the Chevrolet Equinox EV for $33,600.

• Appeals to a new class of first-time EV buyers that will gravitate toward low up-front costs.

• Expands its customer base to new/younger generations of drivers that tend to gravitate toward low-priced options measuring against gas-driven options.

One of the largest wins is expanding GM's customer base and creating the framework for loyalty with the brand.

The company continues to pursue these opportunities with a re-designed Chevrolet Bolt being made available for model year 2027, to build upon its already significant position with affordable electric vehicles.

2. A Scalable and Flexible EV Platform

A key contributor to GM's possibility is its investment in the Ultium battery platform. Announced in 2020, the platform allows GM to scale EV production using the same technology, while producing EVs of all different sizes, from compact cars to full-size trucks.

Additional benefits of the Ultium platform include:

• The capability to power everything from a compact car to a full-size truck with versatility.

• Lower production costs and less manufacturing complexity.

• A unique ability to make new models faster than its competitors, through modular innovation.

• The ability to incorporate next-generation features and technologies seamlessly.

This move complements its current battery offerings, while accelerating blending of its EV offerings to create a sustainable lineup with new and innovative vehicles for years to come.

3. Achieving Profitability from the EV Segment

Perhaps the most important milestone for GM to hit this year is achieving positive variable profitability for its EV lineup in 2024. Simply stated, the revenues gained from selling an electric vehicle (EV) now exceed the variable direct costs of producing an EV account for the labor and materials.

Though GM has invested heavily in retooling existing factories to produce EVs, or building new assembly factories from scratch, GM has proven it can produce EVs profitably.

Key impacts of achieving profitability are:

• Greater ability to reinvest in research, development, and new technologies for future innovation.

• Allows for the launch of new features such as longer battery range, and smart technology.

• Upon achieving potential profitability, greater flexibility to potentially price more competitively among customers.

• Enhanced ability for GM to react to changes in the EV market or economic process.

• Enable GM to expand its business into additional market segments while increasing overall production capacity.

As this occurs, GM can keep pushing its new electric vehicles forward into new products, move into new segments, and in particular grow its shown EV market share.

Commitment to Sustainability and Reducing Emissions

Another contributing aspect of GM's EV rise is its focus on environmental responsibility. Part of GM's long-term aspiration includes a future with zero emissions. GM has made commitments by taking action ahead of its plans to reduce the carbon footprint from its manufacturing to its movement towards clean energy to reduce the carbon emissions of its operations.

• Set future goals and targets for improving GM's footprint.

• Help set a goal of zero-emissions vehicles across its vehicle lineup.

• Use recyclable and sustainable materials in making its vehicles.

• Continue to improve energy efficiency across all its manufacturing plants.

What’s Next

Although General Motors has made tremendous strides, there are still many challenges. The end of the $7,500 federal tax subsidy on September 30 may temporarily dampen the market. GM remains optimistic.

With an attractive growing line of desirable EVs, an established national charging infrastructure, and a sustainable proving production model, GM stands in a strong position to maintain its growth and continue pushing for the pole position in the U.S. electric vehicle market.