General Motors (GM) shares fell almost 6% on Thursday after the carmaker once again warned that production of its electric vehicle (EV) lineup is being slowed by issues assembling updated battery modules.
At a conference, CFO Paul Jacobson repeated concerns that he and CEO Mary Barra had expressed when the company released its second quarter earnings report last month.
The battery issue was especially impacting manufacturing of the Cadillac Lyriq. Jacobson said that more than 1,000 were produced in July, but that was well below the rate GM had originally estimated. The company missed production targets last year, and delivered fewer than 2,400 of the luxury SUVs in the first half of this year.
Overall, GM produced just 50,000 EVs from January through June, with a large majority of them being the Chevrolet Bolts that use an older battery pack. The new, modular Ultium batteries are made at a plant in Lordstown, Ohio that GM owns with Korea’s LG Energy Solution. Two more battery factories are under construction.
Shares of General Motors slipped to their lowest level in more than two months following the news.
