General Motors has updated its financial forecasts for 2024 after exceeding Wall Street expectations for the second quarter. The automaker now anticipates adjusted earnings in the range of $13 billion to $15 billion, an increase from the previous projection of $12.5 billion to $14.5 billion. Additionally, GM has revised its expectations for operating cash flow and earnings per share, while slightly lowering the forecast for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, reflecting over a 7% increase from the previous year, surpassing Wall Street’s estimate of $45 billion. Earnings per share reached $3.06, significantly above the $2.71 anticipated by analysts and representing a 60% rise compared to 2023. The company’s net income grew 14% to $2.9 billion, up from $2.5 billion.
In pre-market trading on Tuesday, GM’s stock surged nearly 5%, marking a more than 37% increase for the year. After trading concluded on Monday, GM announced a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra emphasized the strong performance of the company’s gas-powered trucks and SUVs while announcing plans to launch eight new or redesigned models across different sizes in North America. She also highlighted GM’s progress in ramping up production for the electric Chevrolet Equinox, assuring shareholders of the company’s commitment to responsible growth in the EV sector.
However, Barra previously indicated that GM is unlikely to meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a slowdown in the market. Despite this, the company’s EV sales saw an increase last quarter.
Moreover, Barra announced a pivot for Cruise, GM’s autonomous vehicle division, which will abandon the development of its Origin vehicle. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. The decision follows a $600 million charge related to the suspension of Origin production in Detroit.
Barra mentioned that using the Bolt addresses regulatory concerns regarding the unique design of the Origin, which lacked a steering wheel. This change is expected to reduce costs per unit and improve resource allocation.
“Our vision to transform mobility using autonomous technology remains intact, and every mile traveled, and every simulation, brings us closer to our goals as Cruise continues to prioritize AI,” Barra stated.
Additionally, GM is working to restructure its joint venture with SAIC Motor in China as it faces ongoing losses, with the company reporting a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles, which is a 50% decline from the prior year, according to Automotive News.