General Motors has increased several of its financial projections for 2024 following strong performance surpassing Wall Street expectations in the second quarter. The automaker has adjusted its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from a previous forecast of $12.5 billion to $14.5 billion. Additionally, targets for operating cash flow and earnings per share have also been raised, while the expectation for net income attributable to shareholders saw a slight decrease of less than 1%, revised to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, representing an increase of over 7% compared to the same period last year and surpassing Wall Street’s expected $45 billion, according to FactSet estimates. Earnings per share reached $3.06, exceeding the anticipated $2.71 and marking a 60% increase from 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
Shares of GM rose nearly 5% in pre-market trading, with the stock having gained more than 37% this year. On the previous trading day, GM announced a cash dividend for the third quarter, which further boosted investor interest.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of the company’s gas-powered trucks and SUVs, noting plans to launch eight new or redesigned models in North America. Barra emphasized GM’s commitment to scaling production of the electric Chevrolet Equinox, stating, “as excited as we are about our EVs and our early success, we are committed to disciplined volume growth.”
Earlier this month, Barra acknowledged that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. However, the company remains flexible and plans to “build to demand,” despite experiencing growth in EV sales last quarter.
Barra also revealed that GM’s self-driving unit, Cruise, would abandon the development of its Origin vehicle and instead focus on using the next-generation Chevrolet Bolt for testing purposes in Texas and Arizona. This decision follows a $600 million charge linked to the halt in Origin production in Detroit.
In discussions with analysts, Barra assured that utilizing the Bolt would address regulatory concerns related to the Origin’s distinctive design, including its absence of a steering wheel. She noted that this shift would reduce per unit costs and optimize resource allocation.
“Our vision to transform mobility using autonomous technology remains strong, and with every mile traveled and every simulation, we move closer because Cruise is an AI-first company,” Barra stated.
Furthermore, GM is working to restructure its joint venture in China with SAIC Motor as it continues to incur losses, reporting a $104 million loss in the second quarter. In June, production at SAIC-GM was cut by 70%, resulting in the delivery of 26,000 vehicles, which is 50% less than the previous year, according to Automotive News.