General Motors announced an increase in several financial projections for 2024 following stronger-than-expected results in its second quarter, surpassing Wall Street’s predictions.
The Detroit-based automaker raised its forecast for adjusted earnings to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. Additionally, it revised its targets for operating cash flow and earnings per share, though it slightly decreased 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, reflecting a year-over-year increase of over 7%, and surpassing Wall Street’s expected $45 billion. Earnings per share reached $3.06, exceeding the $2.71 analysts had anticipated 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, bringing its year-to-date increase to more than 37%. Additionally, GM declared a cash dividend for the third quarter, contributing to the stock’s positive performance.
In a letter to shareholders, CEO Mary Barra highlighted the robust performance of its gas-powered trucks and SUVs and mentioned that the company is set to launch eight new or redesigned models, including compact, mid-size, and full-size vehicles in North America. Barra also emphasized the scaling of production for the electric Chevrolet Equinox, reiterating the company’s commitment to “disciplined volume growth” for electric vehicles (EVs).
However, earlier this month, Barra acknowledged that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a market slowdown. The company plans to be flexible and adjust production based on demand, although EV sales did show growth in the last quarter.
Furthermore, Barra announced that Cruise, GM’s self-driving division, will discontinue its Origin vehicle in favor of the next-generation Chevrolet Bolt for its testing operations in Texas and Arizona. The company incurred a $600 million charge related to the cancellation of Origin production in Detroit.
During a call with analysts, Barra stated that utilizing the Bolt would address regulatory concerns regarding the unique design of the Origin, including its lack of a steering wheel. This change is expected to reduce costs per unit and enable GM to optimize its resources.
Barra reaffirmed GM’s commitment to transforming mobility through autonomous technology, stating that each mile traveled and simulation gets the company closer to that goal. GM is also looking to restructure its joint venture in China with SAIC Motor as it continues to face losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM scaled production down by 70%, delivering only 26,000 vehicles—roughly half of the amount delivered in the previous year.