General Motors has raised several financial targets for 2024 after exceeding Wall Street’s expectations in its second-quarter results.
The automaker has adjusted its forecast for adjusted earnings this year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. Additionally, it has updated its targets for operating cash flow and earnings per share, although net income attributable to shareholders has been slightly reduced by less than 1%, now projected between $10 billion and $11.4 billion.
In terms of revenue, GM reported $47.9 billion for the second quarter, a more than 7% increase from the previous year and surpassing the anticipated $45 billion as estimated by Wall Street. Earnings per share reached $3.06, which is higher than the $2.71 expected by analysts and represents a 60% increase compared to 2023. The company also saw a 14% rise in net income, totaling $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock surged nearly 5% in pre-market trading on Tuesday, contributing to a year-to-date increase of over 37%. The company also declared a third-quarter cash dividend, boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs and stated the company is set to launch eight new or redesigned models across various segments in North America. She also emphasized that GM is scaling production of the electric Chevrolet Equinox, mentioning a commitment to disciplined volume growth in the electric vehicle sector.
However, 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 slowdown in the market. The company plans to adapt by building according to demand, although its electric vehicle sales did see growth in the last quarter.
Additionally, Barra announced that GM’s self-driving unit, Cruise, will abandon its Origin vehicle in favor of utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona, following a pause in production after an incident last October. This shift is expected to alleviate regulatory concerns regarding the Origin’s unconventional design and reduce production costs.
Barra reaffirmed the company’s vision to transform mobility through autonomous technology, focusing on every mile and simulation as a step closer to that goal.
Furthermore, GM is working on restructuring its joint venture in China with SAIC Motor, as it faces ongoing losses. The company reported a $104 million loss for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering 26,000 vehicles—50% less than the same period last year.