In a power-packed performance, South Korean battery magnate LG Energy Solution (LGES) reported a jolting 40% surge in quarterly profit, thanks to a charged-up output from its U.S. joint venture factory with General Motors (NYSE: GM). LGES, a trusted energy supplier to automakers like Tesla (NASDAQ: TSLA) and GM, reveled in an operating profit of 731 billion won ($543.46 million) during the July-September period, outshining last year’s 522 billion won figure.
This impressive feat perfectly aligned with LGES’s own forecast of 731 billion won, outshining the 659 billion won average prediction from LSEG SmartEstimate. However, as the market curiously glanced at the balance sheets, LGES shares dimmed by 3.7% in the morning, while the benchmark KOSPI dipped by a mere 0.2%. Riding on the EV wave, LGES has undoubtedly reaped the benefits of U.S. tax credits for electric vehicles, along with a turbocharged production at its GM joint venture. But let’s not forget, the EV road is never without its twists and turns. Just recently, GM pumped the brakes on launching various electric vehicle models to navigate cost concerns, prioritizing profits over sales targets.