General Motors has revised its financial projections for 2024 following impressive second-quarter results that exceeded Wall Street expectations. The Detroit-based automaker has increased its anticipated adjusted earnings for the year to between $13 billion and $15 billion, an increase from the previous range of $12.5 billion to $14.5 billion. Additionally, GM raised its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to between $10 billion and $11.4 billion, a decrease of less than 1%.
In the second quarter, GM reported revenues of $47.9 billion, reflecting a more than 7% increase from the same period last year and surpassing the expected $45 billion as estimated by FactSet. Earnings per share reached $3.06, exceeding analyst projections of $2.71 per share and demonstrating a 60% increase compared to 2023. Meanwhile, net income rose 14%, amounting to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock rose nearly 5% in pre-market trading on Tuesday, and it has surged more than 37% throughout the year. The company declared a cash dividend for the third quarter after market close on Monday, contributing to the stock’s positive momentum.
In a message to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs, noting that the company is in the process of launching eight new or redesigned models in North America across various sizes. Barra also emphasized GM’s commitment to increasing production of the electric Chevrolet Equinox, stating the company is focused on “disciplined volume growth” despite earlier remarks indicating that GM would not meet its objective of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns. Nonetheless, electric vehicle sales did grow in the last quarter.
Additionally, Barra announced that Cruise, GM’s autonomous vehicle division, would discontinue its Origin vehicle following a previous operational rollback due to an incident last October. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the suspension of Origin production in Detroit. Barra indicated that using the Bolt would mitigate regulatory concerns regarding the Origin’s unconventional design, such as its absence of a steering wheel, and also help reduce costs and optimize resources.
“Our vision to transform mobility using autonomous technology is unchanged, and every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company,” Barra stated.
Furthermore, GM is working on restructuring its joint venture in China with SAIC Motor, which has been operating at a loss. The company reported a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles—50% fewer than the previous year, according to reports.