Barra: EV interest opportunity for GM to capture more value

Mighty valuations of Tesla Inc. and electric vehicle startups signal an opportunity for General Motors, says CEO Mary Barra.

Today, GM's market cap is about $86 billion, far below Tesla's, which stands at $1.04 trillion. And as of Wednesday (Nov. 10), startup EV maker Rivian was valued at $98.6 billion.

"General Motors is so undervalued," Barra said Wednesday during The New York Times DealBook online summit.

Investors' interest in EVs marks "a huge opportunity for General Motors to capture significantly more value," she said.

GM has long had a broad manufacturing, supply chain and retail footprint. To compete with the high valuations of Tesla and EV startups, "we have to be better, be faster, have vehicles that consumers want to have, solve the ownership equation," said Barra. "If anything, it motivates me to work even harder."

GM plans to invest $35 billion in electric and autonomous vehicle development and have 30 EVs available globally through 2025. By 2035, the auto maker aims to launch a fully electric light-vehicle lineup. As GM converts its portfolio, Barra says it won't lose share to any startup or traditional auto maker.

Many customers own only one vehicle and depend on it every day, she said. "General Motors has brands that [customers] trust. We have the highest loyalty rating. We have manufacturing plants that are ready to go," said Barra. "When I look at our ability to scale, to serve customers, I think we're incredibly well positioned, and we're not going to cede our leadership position to anyone."

Barra continued to push for broader EV tax credits as part of the Build Back Better bill, asking the government to change the rules so that GM and Tesla customers are no longer excluded from a $7,500 federal tax credit that's still available to buyers of EVs from every other manufacturer.

"I think what's really important to do is to level the playing field from the fact that the early movers were penalized. We've already used our 200,000 credits, so people who are just now rolling out an EV, they have a $7,500 advantage," Barra said.

The bill also includes a provision that could give consumers an extra incentive to buy union-made EVs. GM's 46,000 hourly workers are represented by the UAW.

"The bill is set up to incentivize what the country is looking to build: a strong middle class," Barra said.

In September, Barra was named chair of the Business Roundtable.