General Motors has elevated several financial projections for 2024 after exceeding Wall Street’s expectations during its second quarter. The automaker now anticipates adjusted earnings for the year to be between $13 billion and $15 billion, an increase from the prior range of $12.5 billion to $14.5 billion. Additionally, GM has adjusted its targets for operating cash flow and earnings per share, while slightly reducing its 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% rise compared to the previous year and surpassing Wall Street’s forecast of $45 billion, as per FactSet estimates. Earnings per share reached $3.06, exceeding the anticipated $2.71, and representing a 60% growth from 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock surged nearly 5% in pre-market trading on Tuesday, contributing to an overall increase of more than 37% this year. After the market closed on Monday, GM declared a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of its gasoline-powered trucks and SUVs, while revealing plans to introduce eight new or redesigned models across various sizes in North America. Barra also emphasized GM’s commitment to scaling production of the electric Chevrolet Equinox, stating, “as excited as we are about our EVs and our early success, we are committed to disciplined volume growth.”
Earlier this month, Barra admitted that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown, although EV sales experienced growth last quarter. The company indicated a flexible approach to manufacturing based on demand.
Moreover, Barra announced strategic changes for Cruise, GM’s self-driving unit, which is discontinuing its Origin vehicle following operational setbacks from a previous incident. Instead, Cruise will utilize the next-generation Chevrolet Bolt as it continues testing in Texas and Arizona. This decision comes with a $600 million charge related to suspending Origin production in Detroit.
During an analyst call, Barra explained that the switch to the Bolt would address regulatory concerns regarding the Origin’s unconventional design and help reduce costs per unit. She reiterated GM’s commitment to innovating in autonomous technology, stating, “Our vision to transform mobility using autonomous technology is unchanged.”
Additionally, GM is working to restructure its joint venture with SAIC Motor in China, where it has been absorbing losses. The company reported a $104 million loss for the second quarter, and earlier this year, SAIC-GM cut production by 70%, delivering 26,000 vehicles, which is a 50% decrease from the previous year.