General Motors has announced an increase in several financial projections for 2024 after exceeding Wall Street expectations in its second quarter report. The Detroit-based automaker has raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has enhanced its targets for operating cash flow and earnings per share, while slightly lowering its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking an increase of over 7% compared to the previous year and surpassing Wall Street’s expectation of $45 billion. Earnings per share were recorded at $3.06, exceeding the predicted $2.71 per share and representing a 60% surge from 2023. Net income rose by 14%, reaching $2.9 billion, up from $2.5 billion.
Following this financial performance, GM’s stock rose nearly 5% in pre-market trading on Tuesday, with an overall increase of over 37% for the year. The company also declared a third-quarter cash dividend after market close on Monday, contributing to the stock’s positive momentum.
In a shareholder letter, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, while announcing plans to launch eight new or redesigned compact, mid-size, and full-size models in North America. Barra emphasized GM’s commitment to disciplined growth in the production of its electric Chevrolet Equinox, despite earlier comments indicating that the company would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Additionally, Barra revealed that GM’s self-driving unit, Cruise, plans to discontinue its Origin vehicle project. Instead, it will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. This change follows a $600 million charge related to the halted production of the Origin model in Detroit. Barra explained that using the Bolt would address regulatory concerns about the Origin’s design, which lacked a traditional steering wheel, and also help reduce costs.
Lastly, GM is working to restructure its joint venture in China with SAIC Motor, facing ongoing losses. The company reported a loss of $104 million for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles, which is a 50% decrease compared to the same time last year.