GM EV unit BrightDrop forecasts $1 billion in 2023 revenue

BrightDrop CEO Travis Katz says he’s “charged up” about 2023 and the forecast for the General Motors EV unit to top $1 billion in revenue in 2023.

The announcement, tied to General Motors’ investor day on Thursday, is the first time BrightDrop has released revenue numbers. The company did not release revenue data in 2021, the year it launched, or the current year.

“What we are seeing is an incredible amount of demand,” Katz told CNBC. “This isn’t just about saving the environment or saving the planet. This saves companies money. That’s part of why we’re seeing so much interest even in the middle of a lot of economic uncertainty.”

BrightDrop estimates that operating one of its Zevo all-electric delivery vans costs approximately $10,000 less than a comparable internal combustion engine vehicle. The company has 25,000 reservations and letters of intent from large fleet operators, including Walmart, FedEx and Verizon.

FedEx and Kroger are also testing the use of BrightDrop’s Trace E-carts, which are motorized pallets that can be used for package or grocery delivery.

“All of these big companies have made commitments to their customers, their shareholders to start to eliminate their carbon emissions. A lot of them have committed to zero emissions goals by 2035 or 2040. So they’re really looking for help and we’re going to help the world’s largest companies meet those goals,” Katz said.

BrightDrop also expects the $30,000 tax credit for commercial EVs in the Inflation Reduction Act to be a tailwind for sales going forward. In December, it will open up a factory in Canada.

GM said at its investor day that it expects EVs to be as profitable as traditional autos by 2025, years ahead of schedule.

“The economics of switching have never been better,” Katz said. “What we’re hearing is when you have dual forces of wanting to meet climate goals, and wanting to save money, it’s a win-win. We’re going to start producing these vans at scale, starting in December, and then ramping up very quickly from there with the goal of getting to 50,000 units of production out of that facility by 2025.”

Katz said BrightDrop will continue to operate as a part of GM, despite being based in Silicon Valley, and there no plans to spin off the EV maker into a separate company.