General Motors has revised its financial projections for 2024 upward after exceeding Wall Street’s expectations in its second-quarter performance. The Detroit-based automaker now anticipates adjusted earnings between $13 billion and $15 billion for the year, an increase from the previous range of $12.5 billion to $14.5 billion. It has also raised 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.
The company’s revenue for the second quarter reached $47.9 billion, reflecting a year-over-year increase of over 7% and surpassing Wall Street’s forecast of $45 billion. Earnings per share stood at $3.06, significantly exceeding analysts’ expectations of $2.71 and marking a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
GM’s stock rose nearly 5% in pre-market trading following the announcement, with shares up more than 37% year-to-date. Additionally, GM declared a third-quarter cash dividend after the market closed on Monday, contributing to the stock’s positive momentum.
In a letter to shareholders, CEO Mary Barra praised the strong sales of gas-powered trucks and SUVs and announced the launch of eight new or redesigned vehicle models across various sizes in North America. Barra highlighted the ongoing production scaling of the electric Chevrolet Equinox and affirmed the company’s commitment to measured growth in electric vehicle (EV) sales.
Despite previously setting a target of producing 1 million electric vehicles in North America by the end of 2025, Barra acknowledged that GM would not meet this goal due to a slowdown in the market. The company has indicated a flexible strategy to “build to demand,” although it has reported growth in EV sales over the last quarter.
Barra also revealed that Cruise, GM’s autonomous vehicle unit, will no longer pursue its Origin vehicle model after scaling back operations following an incident last October. Instead, Cruise will concentrate on deploying the next-generation Chevrolet Bolt in its testing phases in Texas and Arizona. GM has taken a $600 million charge related to the suspension of the Origin’s production in Detroit.
During a call with analysts, Barra stated that utilizing the Bolt would address regulatory concerns regarding the Origin’s unconventional design, which lacks a steering wheel. This shift is expected to reduce per unit costs and enhance resource allocation.
Barra reiterated the company’s vision to innovate mobility through autonomous technology, emphasizing the importance of every mile traveled and simulation in bringing Cruise closer to its goals. Furthermore, GM is working to restructure its joint venture in China with SAIC Motor, facing ongoing losses, including a $104 million loss reported in the second quarter. In June, production was cut by 70%, with only 26,000 vehicles delivered, representing a 50% decrease from the previous year.