General Motors (GM) is launching a new energy business called GM Energy, aiming to sell batteries, charging equipment, solar panels, and software to residential and commercial customers. The move is seen as a direct competition with Tesla in renewable energy generation and storage. GM’s Chief EV Officer, Travis Hester, stated that the company wants to capture a share of the $120-150 billion market for energy generation and storage products. GM plans to make its brand synonymous with electric vehicles and a range of related products and services. The new division will consist of three units, Ultium Home, Ultium Commercial, and Ultium Charge 360, offering various products and solutions, including bi-directional charging equipment, vehicle-to-home (V2H) and vehicle-to-grid (V2G) equipment, stationary storage, solar products, software applications, cloud management tools, microgrid solutions, and hydrogen fuel cells. GM Energy will also enter the virtual power plant business by selling excess power from EVs back to utilities during peak demand. GM has partnerships with PG&E, SunPower, Con Edison, Graniterock, and New Hampshire Electric Cooperative for various energy-related projects. Although GM does not have its own branded EV charging network, it plans to build a coast-to-coast network in partnership with EVgo. The launch of these new energy products is expected in the future, with V2H services being tested in California and solar products becoming available in 2024. GM is committed to the EV and energy business, considering it as the company’s future.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| GM creates new energy business to sell batteries, charging equipment, solar panels, and software | Expansion into renewable energy market | GM Energy becomes a major player in energy generation and storage | Competition with Tesla and smaller firms, potential market growth |
| GM aims to overtake Tesla in vehicle sales and challenge it in the energy market | Competition with Tesla in vehicle sales and renewable energy | GM becomes a leader in both vehicle sales and energy generation/storage | Desire to compete with Tesla and expand market presence |
| GM sees opportunity in the $120-150 billion market for energy generation and storage products | Capitalizing on a growing market | GM becomes a significant player in the energy market | Potential for significant revenue growth |
| GM aims to make its brand synonymous with EVs and related products and services | Brand expansion and diversification | GM becomes known for a range of EV-related products and services | Desire to establish brand dominance and customer loyalty |
| GM Energy division will sell a range of products to residential and commercial customers | Offering a variety of products and services | GM Energy becomes a one-stop shop for energy generation and storage | Meeting customers’ diverse needs and increasing sales |
| GM Energy will be in the virtual power plant business, selling power back to utilities | Entering the virtual power plant market | GM Energy becomes a key player in grid power generation | Utilizing EVs’ power capacity and optimizing energy distribution |
| GM partners with SunPower to sell solar panels and home energy storage products | Collaboration with SunPower for solar sales and installations | GM becomes a provider of solar energy solutions | Expanding product offerings and meeting customer demand |
| GM plans to manufacture its own battery cells, storage units, and backup power generators | Vertical integration in battery and generator production | GM gains more control over its supply chain and product offerings | Ensuring quality control and reducing dependence on external suppliers |
| GM is developing its own branded EV charging network | Establishing a proprietary EV charging network | GM becomes a leader in EV charging infrastructure | Providing convenience and enhancing the EV ownership experience |
| Launch dates for new energy products are still in the future | Future product releases | GM expands its product lineup in the coming years | Continuing innovation and development in the energy sector |
| GM resists calls to spin off its EV business, emphasizing its importance to the company’s future | Maintaining integration of EV business within GM | GM solidifies its commitment to EVs as a core business | Recognizing the long-term potential of EVs in the automotive industry |