General Motors is adjusting its financial forecasts for 2024 after exceeding Wall Street’s expectations in the second quarter. The automaker now anticipates adjusted earnings of between $13 billion and $15 billion for the year, an increase from its previous estimate of $12.5 billion to $14.5 billion. GM also raised its targets for operating cash flow and earnings per share, although it slightly lowered its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenues of $47.9 billion, representing a more than 7% increase from the previous year and surpassing the $45 billion anticipated by analysts. Earnings per share came in at $3.06, exceeding the expected $2.71 and reflecting a 60% rise compared to 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
As a result of this positive performance, GM’s stock surged nearly 5% in pre-market trading on Tuesday and has increased over 37% this year. Following the market close on Monday, GM declared a cash dividend for the third quarter, providing an additional boost to its stock.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs. She mentioned GM’s plans to launch eight new or redesigned vehicles across various sizes in North America and noted that the company is ramping up production of the electric Chevrolet Equinox. Barra emphasized GM’s commitment to disciplined growth in electric vehicles (EVs), despite acknowledging that the company would not meet its goal of producing 1 million EVs in North America by the end of 2025 due to a market slowdown.
Additionally, Barra announced changes to GM’s self-driving division, Cruise, which will abandon its Origin vehicle in favor of using the next-generation Chevrolet Bolt for testing in Texas and Arizona. This change follows a prior setback for Cruise in October. To address regulatory concerns about the Origin’s design, which lacks a steering wheel, Barra indicated that this shift would reduce costs per unit and enhance resource optimization.
Barra reaffirmed that GM’s vision for transforming mobility through autonomous technology remains intact and that every mile traveled brings the company closer to its goals.
Furthermore, GM is restructuring its joint venture with SAIC Motor in China due to ongoing losses, reporting a $104 million loss in the second quarter. In June, production cuts saw SAIC-GM’s output reduce by 70%, leading to a delivery of only 26,000 vehicles, which is 50% lower than the previous year.