General Motors has updated its financial projections for 2024 following a strong second quarter that exceeded Wall Street’s expectations. The Detroit-based automaker has raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has 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 terms of performance, GM reported second-quarter revenue of $47.9 billion, reflecting a more than 7% increase from the previous year and surpassing Wall Street’s expectations of $45 billion. Earnings per share reached $3.06, exceeding analysts’ predictions of $2.71 per share, and marking a 60% increase compared to last year. The company’s net income grew by 14%, totaling $2.9 billion, compared to $2.5 billion in the same period last year.
Following these results, GM’s stock surged nearly 5% in pre-market trading on Tuesday, having risen over 37% this year. The company also declared a cash dividend for the third quarter, which contributed positively to the stock’s performance.
In a letter to shareholders, CEO Mary Barra highlighted the strong sales of GM’s gas-powered trucks and SUVs, noting that the company is set to launch eight new or redesigned vehicle models across North America. She mentioned ongoing production scaling for the electric Chevrolet Equinox, emphasizing the company’s commitment to disciplined growth in electric vehicle (EV) production.
However, Barra acknowledged that GM will 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 plans to adapt to demand, although its EV sales did see growth in the last quarter.
Barra also announced a strategic shift for GM’s self-driving unit, Cruise, which will discontinue its Origin vehicle model to focus on testing the next-generation Chevrolet Bolt in Texas and Arizona. This decision follows a significant $600 million charge related to the halted production of the Origin.
During a call with analysts, Barra stated that utilizing the Chevrolet Bolt would address regulatory concerns regarding the unique design of the Origin, which lacks a steering wheel. This change is expected to reduce costs per unit and help optimize GM’s resources.
Moreover, GM is working on restructuring its joint venture in China with SAIC Motor amid ongoing losses, having reported a $104 million loss for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles—a 50% decline compared to the previous year.