General Motors has raised several financial targets for 2024 following a strong performance that exceeded Wall Street’s expectations in the second quarter. The Detroit automaker has increased its expected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. In addition, GM has boosted its projections for operating cash flow and earnings per share, although it slightly lowered the expectations 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, marking a more than 7% increase year-over-year and surpassing the $45 billion anticipated by analysts, according to FactSet estimates. Earnings per share reached $3.06, exceeding the expected $2.71 and representing a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion in the previous year.
Following this announcement, GM’s stock experienced nearly a 5% jump in pre-market trading on Tuesday, contributing to a more than 37% increase in stock price this year. On Monday, GM also declared a third-quarter cash dividend, positively affecting the stock’s performance.
In a letter addressed to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, noting the company’s initiative to launch eight new or redesigned compact, mid-size, and full-size models in North America. Barra emphasized that GM is scaling up production of the electric Chevrolet Equinox, expressing cautious optimism about the company’s electric vehicle (EV) strategy, stating, “as excited as we are about our EVs and our early success, we are committed to disciplined volume growth.”
Earlier this month, Barra acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. The company intends to remain flexible and “build to demand,” while it did see growth in EV sales last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving division, would abandon its plans for the Origin vehicle, which faced operational challenges. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM recorded a $600 million charge related to the halted production of the Origin in Detroit.
During a conference call with analysts, Barra mentioned that utilizing the Bolt would help address regulatory concerns regarding the Origin’s unconventional design, including the absence of a steering wheel. This shift is expected to reduce per-unit costs and allow GM to better allocate resources.
Barra reaffirmed GM’s commitment to transforming mobility through autonomous technology, emphasizing that every mile traveled and each simulation brings the company closer to its goals, as Cruise continues to operate as an AI-first enterprise.
Lastly, GM is working on restructuring its joint venture in China with SAIC Motor, as the partnership continues to experience financial losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles—50% less than the previous year, according to Automotive News.