DETROIT, Jan 31 Reuters General Motors Co shares jumped early on Tuesday after it reported higher net income for the fourth quarter, forecast strongerthanexpected earnings for 2023 and said it would cut 2 billion in costs.

The automaker, the top in the United States by sales, forecast that it could hold its pretax margins steady between 8 and 10 through 2025, despite a price war that Tesla Inc has triggered in the electric vehicle segment.

GM shares opened up 7.1.

GM plans to build only about 400,000 electric vehicles in North America between now and the first half of 2024. Its financial results will hinge mainly on sales of combustionengine trucks and SUVs.

GM Chief Executive Mary Barra said she does not see a need to cut prices on GM39;s electric vehicles in response to Tesla. Right now based on the interest we39;re seeing, the pricing we put out was very appropriate, Barra told analysts during a call Tuesday.

For now and for several years to come, GM39;s profitability will be driven by demand for those vehicles a reality GM highlighted in its presentation to investors. GM underscored that its Chevrolet and GMC pickup trucks make it No. 1 in sales volume in the U.S. market, and it leads in sales of highly profitable large SUVs as well.

GM39;s outlook sets a high bar for this year, Morgan Stanley analyst Adam Jonas wrote in a note. Jonas said GM expects to boost revenue over a period when other legacy automakers39; revenues could shrink.

We question whether the…