Daimler Truck sees revenue growing as it focuses on autonomous vehicles By Reuters

(Reuters) -Daimler Truck expects revenues to grow as much as 60% between 2025 and 2030, top management of the truck and bus maker told investors on Tuesday.

The company’s optimistic outlook, presented at a capital markets day in Boston, comes a year after Daimler (OTC:) Truck became an independently listed company in a spin-off from the Mercedes-Benz passenger cars, and as it focuses on building autonomous trucks.

Daimler Truch shares rose 2.5%.

“We are ready to take Daimler Truck to the next level,” CEO Martin Daum told investors.

Easing supply chain constraints and stronger demand in its core markets and the after-sales business prompted the company late on Monday to raise its profit and revenue guidance for 2023.

Among the longer-term goals spelled out on Tuesday, the company said it would target for 2030 at least 12% adjusted returns for its industrial business under favourable conditions and revenue growth of 40% to 60% from 2025 to 2030.

It expects to generate over 3 billion euros ($3.30 billion) in revenue and 1 billion euro earnings before interest and taxes from autonomous driving in 2030, it said in a statement.

Daum said he would soon announce a partnership with a battery cell producer in the United States due to incentives provided by the Biden administration’s Inflation Reduction Act, which works to boost production in the U.S.

($1 = 0.9098 euros)