General Motors has raised its financial forecasts for 2024 following a strong second quarter that exceeded Wall Street expectations. The Detroit-based automaker has adjusted its anticipated adjusted earnings for the year to range between $13 billion and $15 billion, up from the previous projection of $12.5 billion to $14.5 billion. Additionally, GM has increased its targets for operating cash flow and earnings per share, though it slightly lowered its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion, a decrease of less than 1%.
In the second quarter, GM reported revenue of $47.9 billion, reflecting an increase of over 7% compared to the same period last year and surpassing the $45 billion forecasted by analysts. The company’s earnings per share reached $3.06, exceeding analyst expectations of $2.71 per share and showing a 60% increase from 2023. Meanwhile, net income rose 14%, reaching $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock experienced an almost 5% increase in pre-market trading on Tuesday, contributing to a year-to-date growth of more than 37%. The company declared a third-quarter cash dividend after the market closed on Monday, further boosting its stock.
In a letter to shareholders, CEO Mary Barra emphasized the success of GM’s gas-powered trucks and SUVs while announcing the launch of eight new or redesigned models across various categories in North America. Barrar highlighted the company’s commitment to scaling production of the electric Chevrolet Equinox, stating that while they are enthusiastic about their electric vehicles (EVs), they are focused on disciplined growth.
Barra previously indicated that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market decline. However, the company plans to be flexible and produce according to demand, noting an increase in EV sales during the last quarter.
Moreover, Barra disclosed that Cruise, GM’s self-driving unit, will abandon its plans for the Origin vehicle, shifting focus instead to the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to halting production of the Origin in Detroit.
During an analyst call, Barra mentioned that utilizing the Bolt would address regulatory concerns surrounding the Origin’s distinctive design, such as the absence of a steering wheel. This shift is expected to reduce costs and help GM allocate resources more effectively.
“Our vision to transform mobility using autonomous technology remains unchanged, as every mile traveled and simulation brings us closer, with Cruise positioned as an AI-first company,” Barra stated.
In addition, GM is in the process of restructuring its joint venture in China with SAIC Motor due to continuous losses, which included a $104 million loss reported in the second quarter. In June, SAIC-GM significantly decreased production by 70% and delivered 26,000 vehicles—50% less than the previous year.