General Motors Co (GM.N) on Tuesday reported a higher quarterly net income for the fourth quarter, and forecast stronger-than-expected earnings in 2023, sending its shares up over 5% in premarket trading.

The company expects its core auto operations to perform at a consistently strong level in 2023, with full-year net income attributable to stockholders of $8.7 billion-$10.1 billion, adjusted EBIT of $10.5 billion-$12.5 billion, and diluted and adjusted earnings per share of $6.00-$7.00. Analysts had expected $5.73 a share, according to Refinitiv IBES data.

For the full year, GM’s profit dropped to $9.9 billion from $10 billion in 2021. EBIT-adjusted income of $14.5 billion was a record, up slightly from $14.3 billion a year earlier.

The company expects adjusted automotive free cash flow of $5.0 billion to $7.0 billion in 2023, with net automotive cash from operating activities of $16.0 billion to $20.0 billion.

In the fourth quarter, GM earned $2.0 billion, up from $1.7 billion the previous year. EBIT-adjusted income of $3.8 billion topped the year-earlier $2.8 billion, as higher prices and increased sales volume in North America more than offset higher costs.

GM’s average vehicle selling price in North America hit a record $51,000 in 2022, as the company focused production on more expensive, higher-margin vehicles.

Diluted adjusted earnings per share of $2.12 in the quarter compared with $1.99 a year earlier. Analysts had predicted $1.69.

GM said capital spending will range between $11 billion and $13 billion in 2023, up from $9 billion in 2022.

Ahead of the earnings release, the automaker said it would invest $650 million in Lithium Americas and jointly develop a lithium mine in Nevada that it says is the largest known source of the key battery material in the United States.

The company expects revenue from electric vehicles to reach $50 billion in 2025 — about 22% of total revenue — with pre-tax margins in the low to mid-single digits.

GM reaffirmed plans to build a fourth battery plant in the U.S., but did not say when.

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