As GM's new vehicle lineup is completed, EV sales momentum is beginning to pick up.

• Through August, GM's sales data, publicly reported quarterly by the Detroit automaker, shows a significant increase.
• Nearly 21,000 EVs were sold by GM in July and August, almost reaching its total second-quarter sales.
• Through August, Ford is within striking distance of GM's EV sales record.

If everything had gone according to plan over the past three years, Detroit's automaker would be close to matching General Motors in sales of electric vehicles.

In October 2021, GM CEO Mary Barra stated that the automaker would "absolutely" catch up to the U.S. EV leader by 2025. However, due to slower-than-anticipated EV adoption across the industry and specific challenges with production, software, and supply chains at GM, the company is now significantly behind Elon Musk's carmaker, as well as Hyundai Motor/Kia.

Despite withdrawing most of its previously announced electric vehicle targets, GM believes its EV sales momentum is growing due to an expanding lineup of all-electric vehicles priced between $35,000 and $300,000.

"Rory Harvey, GM president of global markets, including North America, stated to CNBC that the company is leading the industry in growth when it comes to electric vehicles (EVs) in the U.S. Specifically, he emphasized that General Motors has the most comprehensive EV lineup among all manufacturers in the country."

Through August, GM's EV sales in the U.S. increased by about 70% compared to the previous year, with nearly 21,000 EVs sold in July and August, almost matching its full second-quarter EV sales.

Harvey stated during an interview at GM's Cadillac headquarters in suburban Detroit this month that it represents a significant shift in our electric vehicle (EV) performance.

Through August, GM's EV sales were just about 2,000 units away from Ford's, but still more than 20,000 units behind Hyundai/Kia's monthly EV sales. Both Ford and Hyundai/Kia report their sales on a monthly basis.

Despite being legacy automakers, they are still striving to maintain their position as a distant second to Tesla, which is estimated to have sold over 164,000 EVs in the second quarter, more than double the combined sales of GM, Hyundai/Kia, and Ford during that period.

Harvey refused to predict if GM will surpass its rivals in EV sales, but the company anticipates a successful conclusion to the year.

"Harvey stated that we have momentum on our side and anticipate quarter four will be strong in terms of EV adoption. As a result, we are excited about the upcoming close and are looking forward to capturing a significant portion of the upside."

Growing EV lineup

GM currently provides eight EVs that utilize the "Ultium-based" architecture and battery technologies.

The Cadillac lineup includes a range of vehicles, from mainstream models such as the Chevy Equinox and Blazer crossovers to luxury models, including a bespoke $300,000 Celestiq. Two additional Cadillac vehicles, an electric Escalade and entry-level Optiq crossover, are expected to join the lineup by year's end, bringing the total to an industry-leading 10.

"According to Stephanie Brinley, principal automotive analyst at S&P Global, they are following through with their plan to have Ultium under a lot of cars quickly. Although it didn't come online as quickly as they wanted, this was their plan."

Tesla's five vehicles range from the $39,000 Model 3 sedan to the $100,000 Cybertruck, while Hyundai's lineup includes nine cars and crossovers ranging from $34,000 for the Hyundai Kona electric to $80,000 for the Genesis G80.

The pressure is on to sell the billions of dollars worth of vehicles that the automaker has developed.

"The responsibility is to lead consumer demand and fulfill it, but it will take a decade to a decade and a half for electric vehicles to surpass internal combustion engines, and it may take time for consumers to become accustomed to them."

By the end of the year, Cox Automotive predicts that EVs will account for approximately 10% of total U.S. vehicle sales, an increase from the 7.3% recorded in the first quarter.

Although EVs are still less profitable than gas-powered models for GM, the automaker anticipates that they will become profitable on a production or contribution-margin basis once they produce 200,000 units by the fourth quarter.

Under Barra's leadership, EVs have been a significant growth area for the company, helping it meet stricter federal fuel economy standards. Despite announcing a target in January 2021 to exclusively offer all-electric vehicles to consumers by 2035, the CEO has not yet fully withdrawn this goal.

Harvey informed CNBC that the automaker is currently conducting a significant number of roadshow events to showcase its vehicles and attract customers, while also ensuring that its dealerships have the appropriate level of electric vehicles.

"Harvey, a U.K. native, stated that in the U.S., the phrase "Butts in the seat sells cars" is used, while in the U.K., the phrase "Feel at the wheel, seals the deal" is employed. Despite the difference in language, he asserted that the meaning remains the same."

EV targets

The 2035 target, which Barra has stated will be driven by customer demand, represents a transformative objective for GM. As the first legacy car manufacturer to fully commit to EVs, GM has restructured its business to prioritize these vehicles, including announcing other targets that have since been revoked or modified.

The North American production capacity of 1 million EVs and EV profits comparable to gas models have been withdrawn as targets for 2025. The status of other targets, such as revenue of $50 billion from all-electric vehicles by next year, is uncertain.

GM has revised its near-term target for producing electric vehicles (EVs) this year, lowering the range from 200,000 to 300,000 to between 200,000 and 250,000.

The company will remain customer-demand driven in its approach to EVs, as stated by Harvey.

"Harvey advised planning for the future by considering the long-term goals and making necessary adjustments to meet customer demand. He emphasized that they have not overinvested in electric vehicles."