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GM initiates $10B share buyback & updates 2023 guidance to boost Wall Street’s confidence

(Credit: General Motors)

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General Motors (GM) is taking bold moves to regain Wall Street’s confidence after weeks of strikes and negotiating with the United Auto Workers (UAW) union. The legacy automaker is ensuring it kicks off the new year with a few investor-focused initiatives. 

Coming straight from the negotiating table to the accounting table, GM CEO Mary Barra shared that the company is finalizing a budget for 2024, considering the contents of GM’s agreement with the UAW. Barra stated that the finalized budgies would “fully offset the incremental costs of our new labor agreements, and the long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently, and further reducing our fixed and variable costs.”

GM Share Buyback Plan

General Motors intended to initiate an accelerated $10 billion share buyback plan executed by Bank of America, Goldman Sachs, Barclays, and Citibank. The total number of shares repurchased will be determined at the end of the program. The $10 billion share buyback will start in the fourth quarter. 

The auto company will receive and retire $6.8 billion worth of common stock. GM predicts it will have $1.4 billion of capacity remaining under its share repurchase authorization that it will use for “additional, opportunistic share repurchases.”

Besides rolling out a massive share repurchase program, General Motors is also increasing its quarterly dividend in 2024. GM aims to increase quarterly dividend by 33% to 12% per share.

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GM 2023 Guidance

General Motors is rolling with the punches as it closes the year by reinstating its 2023 guidance. The automaker initially pulled its guidance after publishing its Q3 2023 report, mentioning the UAW strike. 

“Because of this uncertainty, we’ve chosen to withdraw our 2023 full-year guidance metrics, even though our strong underlying business fundamentals were pushing us towards the upper half of the range prior to any strike impact,” GM CFO Paul Jacobson

The Detroit automaker believes its 2023 capital spending will be between $11.0 and $11.5 billion, down from the $11 and $12 billion estimate before the strike. The company’s 2023 capital spending estimates are primarily driven by some new product delays and a pullback on some investments related to electric vehicles. 

GM’s updated 2023 guidance also includes the following: 

  • Net income attributable to stockholders is $9.1 billion to $9.7 billion, compared to a previous outlook of $9.3 billion to $10.7 billion.
  • Adjusted EBIT of $11.7 billion to $12.7 billion, compared to the previous outlook of $12.0 billion to $14.0 billion.
  • Adjusted earnings per share are roughly $7.20 to $7.70, including the stock buyback, compared to the previous outlook of $7.15 to $8.15.
  • EPS in the $6.52 to $7.02 range, including the stock buyback, compared to the previous outlook of $6.54 to $7.54
  • Adjusted automotive free cash flow of $10.5 billion to $11.5 billion, compared to the previous outlook of $7.0 billion to $9.0 billion
  • Net automotive cash provided by operating activities of $19.5 billion to $21.0 billion, compared to the previous outlook of $17.4 billion to $20.4 billion

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla Diner to transition to full-service restaurant as Chef heads for new venture

“I am leaving the Tesla Diner project to focus on the opening of Mish, my long-desired Jewish deli. Projects like Mish and the Tesla Diner require a sharpness of focus and attention, and my focus and attention is now squarely on Mish.”

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Credit: Tesla

Tesla Diner, the all-in-one Supercharging and dining experience located in Los Angeles, will transition to a full-service restaurant in January, staff said, as Chef Eric Greenspan said he would take on a new project.

A report from the Los Angeles Times says Greenspan confirmed through a text that he would leave the Diner and focus on the opening of his new Jewish deli, Mish.

Greenspan confirmed to the paper:

“I am leaving the Tesla Diner project to focus on the opening of Mish, my long-desired Jewish deli. Projects like Mish and the Tesla Diner require a sharpness of focus and attention, and my focus and attention is now squarely on Mish.”

Greenspan took on the job at the Tesla Diner and curated the menu back in March, focusing on locally-sourced ingredients and items that would play on various company products, like Cybertruck-shaped boxes that hold burgers.

Tesla Cybertruck leftovers are the main course at the Supercharger Diner

The Tesla Diner has operated as somewhat of a self-serve establishment, where Tesla owners can order directly from their vehicles through the center touchscreen. It was not exclusive to Tesla owners. Guests could also enter and order at a counter, and pick up their food, before sitting at a booth or table.

However, the report indicates Tesla is planning to push it toward a sit-down restaurant, full of waiters, waitresses, and servers, all of which will come to a table after you are seated, take your order, and serve your food.

It will be more of a full-featured restaurant experience moving forward, which is an interesting move from the company, but it also sounds as if it could be testing for an expansion.

We know that Tesla is already considering expanding locations, as it will be heading to new areas of the country. CEO Elon Musk has said that Tesla will be considering locations in Palo Alto near the company’s Engineering HQ, and in Austin, where its HQ and Gigafactory Texas are located.

Musk said that the Diner has been very successful in its first few months of operation.

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Tesla adds new surprising fee to Robotaxi program

“Additional cleaning was required for the vehicle after your trip. A fee has been added to your final cost to cover this service. Please contact us if you have any questions.”

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Credit: Grok

Tesla has added a new and somewhat surprising fee to the Robotaxi program. It’s only surprising because it was never there before.

Tesla shocked everyone when it launched its Robotaxi platform and offered riders the opportunity to tip, only to tell them they do not accept tips. It was one of the company’s attempts at being humorous as it rolled out its driverless platform to people in Austin.

As it has expanded to new cities and been opened to more people, as it was yesterday to iOS users, Tesla has had to tweak some of the minor details of the Robotaxi and ride-hailing platforms it operates.

First Look at Tesla’s Robotaxi App: features, design, and more

With more riders, more vehicles, and more operational jurisdictions, the company has to adjust as things become busier.

Now, it is adjusting the platform by adding “Cleaning Fees” to the Robotaxi platform, but it seems it is only charged if the vehicle requires some additional attention after your ride.

The app will communicate with the rider with the following message (via Not a Tesla App):

“Additional cleaning was required for the vehicle after your trip. A fee has been added to your final cost to cover this service. Please contact us if you have any questions.”

The cost of the cleaning will likely depend on how severe the mess is. If you spill a soda, it will likely cost less than if you lose your lunch in the back of the car because you had a few too many drinks.

This is an expected change, and it seems to be one that is needed, especially considering Tesla is operating a small-scale ride-hailing service at the current time. As it expands to more states and cities and eventually is available everywhere, there will be more situations that will arise.

The messes in vehicles are not a new situation, especially in a rideshare setting. It will be interesting to see if Tesla will enable other fees, like ones for riders who request a ride and do not show up for it.

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Tesla Model Y sold out in China for 2025

Customers who wish to get their cars by the end of the year would likely need to get an inventory unit.

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Credit: Grok Imagine

It appears that the Model Y has been sold out for 2025 in China. This seems to be true for the four variants of the vehicle that are currently offered in the country. 

Tesla China’s order page update

A look at Tesla China’s order page for the Model Y shows a message informing customers that those who wish to guarantee delivery by the end of the year should purchase an inventory unit. This was despite the Model Y RWD and Model Y L showing an estimated delivery timeline of 4-8 weeks, and the Model Y Long Range RWD and Model Y Long Range AWD showing 4-13 weeks. 

As per industry watchers, these updates on the Model Y’s order page suggest that Tesla China’s sales capacity for the remainder of 2025 has been sold out. The fact that estimated delivery timeframes for the Model Y Long Range RWD and AWD extend up to 13 weeks also bodes well for demand for the vehicle, especially given strong rivals like the Xiaomi YU7, which undercuts the Model Y in price. 

Tesla China’s upcoming big updates

What is quite interesting is that Tesla China is still competing in the country with one hand partly tied behind its back. So far, Tesla has only been able to secure partial approval for its flagship self-driving software, FSD, in China. This has resulted in V14 not being rolled out to the country yet. Despite this, Tesla China’s “Autopilot automatic assisted driving on urban roads,” as the system is called locally, has earned positive reviews from users.

As per Elon Musk during the 2025 Annual Shareholder Meeting, however, Tesla is expecting to secure full approval for FSD in China in early 2026. “We have partial approval in China, and we hopefully will have full approval in China around February or March or so. That’s what they’ve told us,” Musk said.

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