General Motors has revised its financial projections for 2024 upward following a strong second quarter that exceeded Wall Street forecasts. The Detroit-based automaker increased its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from a previous estimate of $12.5 billion to $14.5 billion. Additionally, it raised its targets for operating cash flow and earnings per share, although expectations for net income attributable to shareholders were slightly reduced by under 1%, now projected 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 same period last year, and surpassing Wall Street’s expectations of $45 billion. Earnings per share reached $3.06, exceeding the estimated $2.71 and representing a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, compared to $2.5 billion the previous year.
As a result, GM’s stock experienced a nearly 5% increase in pre-market trading, contributing to an overall rise of more than 37% for the year. Following the market’s close on Monday, the company declared a cash dividend for the third quarter, boosting stock performance further.
In a letter to shareholders, CEO Mary Barra emphasized the success of GM’s gasoline-powered trucks and SUVs while announcing plans to launch eight new or redesigned vehicle models in North America. She mentioned ongoing production scaling for the electric Chevrolet Equinox, expressing the company’s commitment to disciplined growth in electric vehicle production despite earlier stating that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025, citing a slowdown in the market.
Barra also revealed that Cruise, GM’s self-driving unit, has decided to abandon its Origin vehicle project in favor of utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. This shift comes after a production halt for the Origin, with GM taking a $600 million charge related to that decision. Barra indicated that using the Bolt would alleviate regulatory concerns regarding the Origin’s unconventional design, as well as reduce costs and optimize resources.
“Our vision to transform mobility using autonomous technology is unchanged, and every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company,” Barra stated.
Moreover, GM is working to restructure its joint venture in China with SAIC Motor amid ongoing financial losses, having reported a $104 million loss in the second quarter. In June, production at SAIC-GM was cut by 70%, leading to the delivery of only 26,000 vehicles, which is 50% less than the previous year.