General Motors has increased several financial projections for 2024 after exceeding Wall Street’s expectations in its second quarter results. The company now anticipates adjusted earnings for the year to be between $13 billion and $15 billion, revised upward from a previous forecast of $12.5 billion to $14.5 billion. GM also raised its targets for operating cash flow and earnings per share, although it slightly reduced expectations for net income attributable to shareholders to a range of $10 billion to $11.4 billion.
The automaker reported a revenue of $47.9 billion for the second quarter, surpassing the expected $45 billion and reflecting more than a 7% increase from the previous year. Earnings per share reached $3.06, exceeding analysts’ expectations of $2.71 and marking a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock surged nearly 5% in pre-market trading, adding to its more than 37% increase this year. The company declared a third-quarter cash dividend after market hours on Monday, which further boosted its stock value.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs. She mentioned that the company is in the process of introducing eight new or redesigned compact, mid-size, and full-size models in North America. Barra also confirmed that GM is ramping up production of the electric Chevrolet Equinox, emphasizing the company’s dedication to gradual volume growth alongside its enthusiasm for electric vehicles.
However, Barra noted earlier this month that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025, attributing this setback to a slowdown in the market. The company has expressed a willingness to be flexible and “build to demand,” even though EV sales saw an uptick last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving unit, would discontinue its Origin vehicle after previously scaling back operations due to an incident last October. Instead, Cruise will focus on testing next-generation Chevrolet Bolt vehicles in Texas and Arizona. This decision comes along with a $600 million charge related to halting Origin production in Detroit.
During a call with analysts, Barra explained that using the Bolt addresses regulatory concerns regarding the Origin’s unconventional design, which lacks a steering wheel. This change is expected to lower production costs and optimize resource allocation, she added.
“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.
Furthermore, GM is working to restructure its joint venture in China with SAIC Motor, which is facing losses. The company reported a $104 million loss for the second quarter in this venture. In June, SAIC-GM reduced production by 70%, delivering only 26,000 vehicles—a 50% decline from the previous year.