While Elon Musk doesn't come to mind as the first person we would want to emulate if running a public company, it seems General Motors - the very same company that once had a tie-up with now disgraced Nikola Motors - has a different opinion of the California-based electric car maker.
In a bid to be "seen more like Tesla", the legacy automaker announced on Wednesday that it hopes to double its annual revenue and grow its profit margin by the end of the decade, according to CNBC.
At the beginning of a two day investor day, GM said it wants to double its annual revenue to $280 billion by the end of the decade. It also said it is targeting operating profit margins of 12% to 14%.
The company took its annual average revenue of about $140 billion as a starting point for its new goals, despite GM posting just $122.5 billion in revenue last year, due to the pandemic.
In 2020, the company's operating profit margin was just 7.9%.
GM CEO Mary Barra commented: “When you look at all of the investments we’ve been making for five years plus, that’s what positions us today to really be in execution mode. We have great confidence in our ability to grow revenues.”
Barra says new revenue growth will come from service based businesses: “Especially in the initial days, we see EVs being plus volume, so we see tremendous opportunity to grow from an EV perspective and then the subscription and services.”
GM's traditional business is expected to increase to $195 billion to $235 billion per year and new and existing tech services could make up the difference.
The company also said it was scaling up its EV manufacturing quickly, with more than 50% of its plants in North America and China capable of producing EVs.
GM President Mark Reuss added that the company is on the verge of announcing a second assembly plant for battery electric trucks. He said: “No one is going to be able to touch us in the battery-electric truck space. You’re going to see that we have hit the mark on those.”
The company also announced that in 2023 it would announce its hands-free system called "Ultra Cruise". And we're guessing they won't even have to run 10 beta versions on the public before releasing the "final" product, either!
Ultra Cruise will be available on more than 2 million miles of road in the U.S. and Canada, the company said.
The purpose of the company's investor meeting this week was to provide a "clear strategy" on how the company could be valued like a tech startup instead of a legacy automaker. As investors likely know, the valuation gap between Tesla and traditional automakers is immense.
Tesla is currently valued at about $750 billion, while GM is valued at just $79 billion.