General Motors has updated its financial projections for 2024 after exceeding Wall Street’s expectations for its second-quarter performance. The Detroit-based automaker has raised its anticipated adjusted earnings for the year to between $13 billion and $15 billion, up from its previous estimate 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 the forecast 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% increase from the previous year and surpassing Wall Street’s forecast of $45 billion, according to FactSet estimates. Earnings per share reached $3.06, exceeding analysts’ expectations of $2.71 and representing a 60% increase compared to 2023. The company also reported a 14% increase in net income, rising to $2.9 billion from $2.5 billion.
Following these announcements, GM’s stock price rose nearly 5% in pre-market trading and has surged over 37% this year. After trading concluded on Monday, the company announced a cash dividend for the third quarter, contributing to its stock rally.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, and announced plans for eight new or redesigned vehicles across various categories in North America. She emphasized the company’s commitment to disciplined growth in the production of its electric Chevrolet Equinox, acknowledging early successes in the electric vehicle market. However, she noted that GM is unlikely to reach its target of producing 1 million electric vehicles in North America by the end of 2025, citing a slowdown in the market.
Moreover, Barra revealed that Cruise, GM’s self-driving unit, would abandon its Origin vehicle in favor of the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a halt in production of the Origin after an incident last October, and the company has incurred a $600 million charge as a result. Barra stated that the use of the Bolt would address regulatory concerns regarding the Origin’s design and help GM optimize resources while reducing costs.
GM is also working to restructure its joint venture in China with SAIC Motor, which has faced financial losses, including a reported loss of $104 million in the second quarter. In June, the SAIC-GM partnership reduced production by 70%, delivering 26,000 vehicles—50% fewer than the previous year, according to Automotive News.