General Motors (GM) has updated its financial projections for 2024 following a strong second quarter that exceeded Wall Street expectations. The Detroit-based automaker revised its anticipated 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, GM raised its targets for operating cash flow and earnings per share, although the forecast for net income attributable to shareholders was slightly reduced by less than 1%, now estimated to be between $10 billion and $11.4 billion.
For the second quarter, GM’s revenue reached $47.9 billion, marking a more than 7% rise compared to the previous year and surpassing analyst expectations of $45 billion, according to FactSet. Earnings per share were reported at $3.06, significantly higher than the anticipated $2.71 and up 60% compared to the same period last year. Net income rose 14% to $2.9 billion from $2.5 billion.
Following these announcements, GM’s stock rose nearly 5% in pre-market trading on Tuesday and has gained more than 37% in value this year. The company also declared a third-quarter cash dividend after trading closed on Monday, further boosting investor confidence.
In a letter to shareholders, GM CEO Mary Barra highlighted the success of its gasoline-powered trucks and SUVs, while also revealing plans to launch eight new or redesigned models across compact, mid-size, and full-size categories in North America. Barra added that GM is ramping up production of the electric Chevrolet Equinox, reinforcing the company’s commitment to controlled growth in electric vehicle (EV) offerings.
Earlier this month, Barra acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a slowdown in the market. The company has indicated its intention to remain flexible and build according to demand, although EV sales did see an increase in the last quarter.
Barra also announced changes to GM’s self-driving unit, Cruise, which had to scale back operations after an incident last October. The company has decided to discontinue its Origin vehicle and will now focus on using the next-generation Chevrolet Bolt for testing its autonomous technology in Texas and Arizona. This shift comes after GM incurred a $600 million charge due to the halt in Origin production in Detroit.
During a call with analysts, Barra emphasized that the decision to utilize the Bolt addresses regulatory concerns surrounding the Origin’s unique design—which lacks a steering wheel—and will also reduce production costs while optimizing resources.
Despite challenges, Barra reiterated GM’s commitment to advancing mobility through autonomous technology, stating, “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.”
Additionally, GM is working on restructuring its joint venture in China with SAIC Motor, which has been experiencing financial losses; the company reported a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles, a 50% decrease compared to the same time last year.