By Joseph White

DETROIT (Reuters) – Common Motors (NYSE:) CEO Mary Barra on Tuesday will face the problem of convincing buyers the No. 1 U.S. automaker won’t be caught in the identical gradual lane this yr as Tesla (NASDAQ:) and different rivals.

Tesla’s warning final week that it anticipated a yr of gradual development and continued pricing stress weighed on different automakers’ shares.

GM has already pared again its 2023 revenue steerage and informed buyers its new contract within the U.S. with the United Auto Employees union will add $9.3 billion in prices.

A $10 billion share buyback and a 33% enhance within the dividend introduced in late November lifted the corporate’s share value off a three-year low. However GM shares are down about 19% from their 52-week excessive and flat for 2024 up to now.

Barra’s outlook for development in North America and China, GM’s two principal markets, will probably be only one subject on Tuesday. Forecasters are calling for single-digit share development in U.S. car demand and growing downward stress on costs.

In China, GM gross sales fell 8.9% in 2023 from a yr earlier, with demand for the Buick and Chevrolet manufacturers falling by almost 20% and 15% respectively as home Chinese language automakers acquire market share.

Analysts may also give attention to the prospects for GM’s electrical car and expertise bets.

GM disclosed final week that its Cruise robotaxi unit is below investigation by the U.S. Justice, the Securities and Alternate Fee and different regulators. Cruise has halted operations after considered one of its vehicles dragged a pedestrian down a San Francisco road.

Barra has stated Cruise expertise might generate $50 billion a yr in income by 2030, however the unit’s effort to ramp up revenue-generating rides is in limbo.

Progress in U.S. demand for EVs has proven indicators of slowing. Ford (NYSE:) has lower manufacturing of its F-150 Lightning electrical pickup to at least one shift, and added a shift of manufacturing at a manufacturing unit that builds combustion Bronco SUVs.

Regardless of the unsure market outlook, GM is making an attempt to speed up deliveries of its new era of EVs in North America after battling Ultium battery pack manufacturing bottlenecks final yr.

GM offered simply 12,859 of its Ultium EVs in 2023. Its best-selling EV, the Chevrolet Bolt, has gone out of manufacturing.

Barra informed buyers in October that Ultium car manufacturing greater than doubled within the third quarter.