General Motors has adjusted its financial projections for 2024 after exceeding Wall Street expectations in the second quarter. The automaker has increased its forecast for adjusted earnings to a range of $13 billion to $15 billion, up from an earlier estimate of $12.5 billion to $14.5 billion. It has also revised its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to 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 previous year and surpassing the $45 billion anticipated by analysts. Earnings per share were reported at $3.06, exceeding the expected $2.71 per share and showing a 60% increase from 2023. Net income rose 14% to $2.9 billion, compared to $2.5 billion in the same quarter last year.
Following this news, GM’s stock saw a nearly 5% rise in pre-market trading on Tuesday, adding to an increase of over 37% for the year. Additionally, GM announced a cash dividend for the third quarter, which further boosted investor confidence.
In a note to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and mentioned the launch of eight new or redesigned models in North America. She also noted plans to scale production of the electric Chevrolet Equinox, emphasizing a commitment to disciplined growth in the electric vehicle sector despite a recent slowdown in market demand. Barra acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025.
On a separate note, Barra explained that GM’s self-driving division, Cruise, would discontinue its Origin vehicle in favor of the next-generation Chevrolet Bolt for testing in Texas and Arizona. This shift was made to address regulatory concerns regarding the Origin’s distinct design, which lacked a steering wheel, and is expected to reduce costs and optimize resources.
Barra reaffirmed GM’s vision to transform mobility with autonomous technology, stating that each milestone brings the company closer to its goals. Additionally, GM is looking to restructure its joint venture in China with SAIC Motor, as it faces losses; the company reported a $104 million loss for the second quarter alone. In June, production at SAIC-GM was cut by 70%, resulting in a delivery of 26,000 vehicles—50% less than the previous year.