GM targets double revenues by 2030 in a bid to pass Tesla

General Motors Co Chief Executive Mary Barra told investors on Wednesday that the automaker plans to double revenue by 2030.

GM plans to expand profits from combustion vehicles even as it rolls out new electric vehicles and new digitally powered services to catch up with Tesla Inc.

GM said if it succeeds, annual revenue by 2030 would be about $280 billion, and the automaker would be the leader in U.S. electric vehicle sales.

Chief Financial Officer Paul Jacobson said GM expects pre-tax profit margins of 12 to 14%, which could beat current levels. That would imply annual pre-tax profits of as much as $39 billion.

Jacobson said GM can fund $9 billion to $10 billion in annual capital spending for electric vehicles and other initiatives while returning money to shareholders.

GM projects its combustion vehicle business can grow even as annual electric vehicle revenues rise to $90 billion by 2030 from $10 billion projected in 2023, Jacobson told investors after markets closed.

The company also plans to add $80 billion from new businesses such as the Cruise autonomous vehicle ride service by 2030.

Barra has been campaigning to convince investors that General Motors can top Tesla in technology development and profitability as the auto industry navigates the most profound technology revolution since the mass-produced Ford Model T.

She and other GM executives began a two-day series of presentations to investors at the automaker’s Technical Center in Warren, Michigan.

They said GM can transform itself “from automaker to platform innovator” – a reference to Silicon Valley digital platform companies such as Apple Inc that have far higher stock valuations than GM and other incumbent auto manufacturers.

Barra took the helm at GM in 2014 and at one point almost doubled the share price from a narrow band around its 2010 initial public offering price of $33. The shares rose after hours on Wednesday after closing at $53.93.

Still, GM’s market capitalization of about $78 billion remains far behind Tesla’s $773 billion market cap, reflecting investor skepticism that GM can match Tesla’s battery and software prowess.

Barra and GM President Mark Reuss outlined a plan for a transition to an all-electric fleet by 2035 that starts gradually, then accelerates after 2030, by which time more than half of GM’s factories in China and North America will be “capable of EV production.”