General Motors has updated its financial forecasts for 2024 after exceeding Wall Street’s expectations in the second quarter. The Detroit-based automaker has increased its projected adjusted earnings for the year to between $13 billion and $15 billion, up from an earlier range of $12.5 billion to $14.5 billion. Additionally, it enhanced its targets for both operating cash flow and earnings per share. However, the net income expectation attributable to shareholders was slightly adjusted downwards by less than 1%, now estimated to be between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase from the previous year and surpassing the anticipated $45 billion benchmark set by analysts. Earnings per share stood at $3.06, exceeding expectations of $2.71 per share and representing a 60% increase compared to 2023. The company’s net income saw a 14% rise to $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock experienced a nearly 5% rise in pre-market trading on Tuesday, contributing to an overall increase of over 37% this year. On the heels of trading closing on Monday, GM announced a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs. She also detailed plans to launch eight new or redesigned models across various sizes in North America. Barra emphasized GM’s commitment to disciplined volume growth while ramping up production of the electric Chevrolet Equinox.
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, attributing the setback to a market slowdown. She mentioned that the company would adopt a flexible approach and “build to demand,” despite experiencing growth in EV sales last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving division, would discontinue the Origin vehicle and instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes after a production halt attributed to an incident last October, resulting in a $600 million charge for GM concerning the Origin’s production in Detroit.
During a call with analysts, Barra stated that using the Bolt would address regulatory concerns regarding the Origin’s unconventional design, such as its lack of a steering wheel. She noted that this pivot would also help decrease per unit costs and optimize resources.
Barra reaffirmed GM’s commitment to transforming mobility with autonomous technology, stating that every mile traveled and every simulation brings the company closer to its goal, as Cruise positions itself as an AI-first organization.
Moreover, GM is working to restructure its joint venture in China with SAIC Motor, which has been experiencing losses. The company reported a $104 million loss for the second quarter, and in June, SAIC-GM cut production by 70%, delivering only 26,000 vehicles—50% fewer than the previous year.