General Motors has revised its financial targets for 2024 following strong second-quarter results that exceeded Wall Street expectations. The automaker now anticipates adjusted earnings between $13 billion and $15 billion, a boost from its previous estimate of $12.5 billion to $14.5 billion. GM has also raised its targets for operating cash flow and earnings per share, although it slightly decreased its net income forecast for shareholders to a range of $10 billion to $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking over a 7% increase from the previous year, surpassing the $45 billion forecast by analysts. The company’s earnings per share reached $3.06, significantly above the anticipated $2.71, and a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
GM’s stock saw an increase of nearly 5% in pre-market trading on Tuesday and has risen over 37% this year. Following the market close on Monday, GM announced a cash dividend for the third quarter, further boosting its stock.
In a shareholder letter, CEO Mary Barra highlighted the strong performance of its gas-powered trucks and SUVs, indicating that GM is launching eight new or redesigned models across various sizes in North America. Barra emphasized the company’s commitment to growing 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.”
Barra acknowledged earlier that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. The automaker has opted for a flexible production approach, adjusting to market demand, even as EV sales increased last quarter.
Additionally, Barra announced that GM’s self-driving unit, Cruise, would discontinue its plans for the Origin vehicle and instead focus on utilizing the next-generation Chevrolet Bolt for vehicle testing in Texas and Arizona. GM incurred a $600 million charge related to the halt of Origin production in Detroit.
During an analyst call, Barra explained that utilizing the Bolt would help alleviate regulatory concerns associated with the unique design of the Origin, which lacked a steering wheel. This shift will also reduce costs per unit and improve resource allocation.
“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.
Moreover, GM is working to restructure its joint venture with SAIC Motor in China, as the company has incurred losses, recording a $104 million loss for the second quarter. In June, SAIC-GM drastically reduced production by 70%, delivering only 26,000 vehicles, which is 50% fewer than the previous year.