General Motors is adjusting its financial targets for 2024 following a strong performance in its second quarter, exceeding Wall Street’s expectations. The automaker has increased its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. It has also raised targets for operating cash flow and earnings per share, while slightly reducing its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, reflecting a more than 7% increase from the previous year and surpassing the anticipated $45 billion. Earnings per share reached $3.06, exceeding the expected $2.71 and representing a 60% increase compared to 2023. The company’s net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock experienced a nearly 5% increase in pre-market trading. The stock has risen over 37% throughout the year. GM also declared a cash dividend for the third quarter, which contributed to the stock’s performance.
In a letter to shareholders, CEO Mary Barra emphasized the success of its gasoline-powered trucks and SUVs, revealing plans to launch eight new or redesigned models in North America. She highlighted the scaling of production for the electric Chevrolet Equinox and reiterated GM’s commitment to disciplined growth in the electric vehicle sector, despite earlier comments indicating that the company would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025.
Furthermore, Barra announced that Cruise, GM’s self-driving unit, would discontinue the Origin vehicle due to operational rollbacks following a previous incident. Instead, Cruise will focus on employing the next-generation Chevrolet Bolt in its testing endeavors in Texas and Arizona, which will also address regulatory concerns regarding the Origin’s design.
GM is also in the process of restructuring its joint venture with SAIC Motor in China, as it continues to face losses. The company reported a $104 million loss for the second quarter, with SAIC-GM having cut production by 70% in June and delivering 26,000 vehicles—50% less than the previous year.