GM stock boosted amid rising revenue forecasts for EVs

Shares of GM are up after the company raised its full-year free cash flow guidance and projected EV revenue rising to more than $50 billion in 2025.

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RACHELLE AKUFFO: All right, shifting gears now to some breaking news. General Motors raising full-year guidance. Pras Subramanian is here with the details. Hey, Pras.

PRAS SUBRAMANIAN: Hey, Rachelle. So GM having its investor day in New York City right now. They adjusted their profit guidance for 2022. They now see full-year adjusted free cash flow of $10 to $11 billion bucks. That was prior guidance was $7 to $9 billion. Also, for full-year adjusted EBIT, they are raising the bottom end of that to $13.5 billion and the top end goes to $14.5 billion. That compares to $13 to $15 billion they had said prior, so you're seeing a little jump here in the stock.

From an EV standpoint, looking ahead, they expect to see the EV business be profitable by 2025 on par of gas vehicles. That's years ahead of schedule. The company is citing the effects of the Inflation Reduction Act, kind of the incentives for building EVs and batteries in the US. CEO Mary Barra was at the investor day today and she said, quote, "it's clear these credits are going to help usher in a new era of technology, innovation, and job creation that's going to achieve what was intended." Recall GM had said that they were going to build about-- they were going to have the capacity to build a 1 million EVs by 2025 and now they're saying they're going to have the profits, as well, then, too