General Motors has revised its financial targets for 2024 following strong performance in the second quarter that exceeded Wall Street expectations. The Detroit-based automaker has adjusted its projected adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the previous estimate of $12.5 billion to $14.5 billion. Additionally, it has raised its targets for operating cash flow and earnings per share, although the outlook for net income attributable to shareholders has been slightly reduced to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, representing a more than 7% increase year-over-year and surpassing Wall Street’s expectations of $45 billion, according to FactSet estimates. Earnings per share were reported at $3.06, which exceeded the anticipated $2.71 per share and marked a 60% increase compared to 2023. The company’s net income rose by 14% to $2.9 billion, up from $2.5 billion.
In pre-market trading on Tuesday, GM’s stock surged nearly 5%. The stock has seen an increase of more than 37% this year. Following the close of trading on Monday, GM also declared a cash dividend for the third quarter, providing further support to its stock price.
In a letter to shareholders, CEO Mary Barra highlighted the strong sales of the company’s traditional gas-powered trucks and SUVs. She also mentioned that GM plans to launch eight new or reimagined models across compact, mid-size, and full-size segments in North America. Barra drew attention to the scaling production of the electric Chevrolet Equinox, emphasizing the company’s commitment to disciplined growth in the electric vehicle market.
Earlier this month, Barra acknowledged that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a slowdown in the market. Despite this, the company is adapting and stated it would “build to demand,” even as EV sales increased last quarter.
Furthermore, Barra announced a strategic shift for Cruise, GM’s self-driving division, which will discontinue the Origin vehicle and instead utilize the next-generation Chevrolet Bolt for tests in Texas and Arizona. GM has incurred a $600 million charge due to the halt in production of the Origin in Detroit.
During a call with analysts, Barra explained that the decision to use the Bolt would address regulatory concerns surrounding the unique design of the Origin, which lacked a steering wheel. She added that this shift would reduce unit costs and enhance resource optimization.
Despite adjustments, Barra reaffirmed GM’s commitment to revolutionizing mobility through autonomous technology, emphasizing that each mile and simulation brings them closer to their goals. Additionally, GM is working on restructuring its joint venture with SAIC Motor in China amid ongoing losses, with the company recording a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70% and delivered 26,000 vehicles, marking a 50% decrease from the previous year.