General Motors has updated its financial projections for 2024 after exceeding Wall Street forecasts in its second-quarter earnings. The automaker now expects adjusted earnings for the year to range between $13 billion and $15 billion, up from a previous forecast of $12.5 billion to $14.5 billion, and it has also increased its targets for operating cash flow and earnings per share. However, the net income forecast for shareholders has been slightly adjusted downward, now expected to be between $10 billion and $11.4 billion.
In the second quarter, GM reported revenues of $47.9 billion, marking an increase of over 7% from the previous year and surpassing the anticipated $45 billion as per FactSet estimates. Earnings per share reached $3.06, exceeding analyst predictions of $2.71 per share, and representing a 60% rise compared to 2023. The company’s net income climbed 14% to $2.9 billion, up from $2.5 billion.
Following the release of these results, GM’s stock rose nearly 5% in pre-market trading on Tuesday and has increased over 37% since the beginning of the year. On Monday, GM also announced a third-quarter cash dividend, further boosting the stock’s appeal.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs, stating that the company is launching eight new or redesigned models in North America. She emphasized the company’s commitment to growing production of the electric Chevrolet Equinox, expressing excitement about its early success in the EV market while also focusing on controlled growth.
Earlier this month, Barra acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a slowdown in the market. The company plans to be flexible in its production strategy based on demand, although it did see an increase in EV sales last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving unit, will abandon its plans for the Origin vehicle and instead concentrate on utilizing the next-generation Chevrolet Bolt for tests in Texas and Arizona. This decision follows a $600 million charge related to halting Origin production in Detroit. Barra noted that utilizing the Bolt addresses some regulatory concerns regarding the Origin’s unconventional design, such as its lack of a steering wheel. This shift is expected to reduce costs per unit and optimize resources for GM.
Barra reiterated GM’s commitment to revolutionizing mobility through autonomous technology, stating that each mile driven and simulation performed brings the company closer to its goals, as Cruise remains focused on AI-driven advancement.
GM is also working on restructuring its joint venture in China with SAIC Motor, amid ongoing financial losses. The company reported a loss of $104 million in the second quarter, and in June, SAIC-GM reduced its production by 70%, delivering 26,000 vehicles—50% lower than the same period last year, according to Automotive News.