DETROIT General Motors will double its annual revenue to $280billion by the end this decade, as it switches to all-electric cars and diversifies its operations from selling trucks and cars.
The automaker revealed Wednesday the new revenue target and fatter projected operating profits margins of 12%-14%. Investor presentations will follow. It will then detail how it plans to achieve these targets through traditional automotive operations as well as new software- and data-focused businesses.
A company spokesperson stated that the revenue goal is based upon a rolling average of $140 billion in revenue for GM in recent years. GM's revenue for the year ended in 2019 was close to $122.5 billion. This is a 10.8% decrease compared to 2019, largely due to factory shut downs during the coronavirus pandemic. In 2020, its operating profit margin was 7.9%.
"When you take a look at all the investments that we've made over the past five years, that's what positions me today to be in execution mode," Mary Barra, GM CEO and Chair, told reporters during a briefing before the event. He added, "We are confident in our ability grow revenues."
Two-day investor meeting will provide a clear strategy to convince investors to rate the company more like a technology startup similar to Tesla. Tesla is valued at over $750 billion, while GM is $79 billion.