GM electric vehicles still not profitable, company sees 'progress'

General Motors says its electric vehicles are still not profitable, but that the company is seeing "progress" in the industry.

GM made the announcement in a letter to shareholders detailing the company's performance in the third fiscal quarter.

"In the third quarter, we grew U.S. retail market share with above-average pricing, well-managed inventories and below-average incentives. In China, sales improved from the second quarter, and dealer inventory fell sharply. In addition, we remain on track to reach our 2024 EV production and profitability targets," the company wrote.

"This is a function of our investments in a dedicated EV platform, U.S. battery cell manufacturing and flexible assembly capacity. Most of our competitors lack these advantages. And no one can match the depth and breadth of our strategic EV portfolio," the statement continued.

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The shareholder letter comes on the heels of a large recall for GM in September and layoffs in August.

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The company recalled roughly 450,000 trucks and SUVs in late September over brake issues. The recall includes some 2023 Chevrolet Silverado 1500, GMC Sierra 1500, 2023 and 2024 Chevrolet Tahoe, Suburban, GMC Yukon, Yukon XL, Cadillac Escalade and Escalade ESV models.

The electronic brake control module software on impacted vehicles may fail to display a warning light when a loss of brake fluid occurs, the NHTSA said. 

The recall documentation shows that the brake control module may fail to warn the driver of brake fluid loss before brake performance begins to degrade. With newer-model vehicles, such problems are often electric and this is no different. A mismatch between the brake control software and the brake control calibrations apparently causes the failure to occur.

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In August, GM conducted layoffs in its software and services division, affecting some 600 employees in Warren, Michigan.

GM said the company "must simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact" as the company "build[s] GM's future."

Fox News' Aislinn Murphy and Jay Caruso contributed to this report.