General Motors is revising its financial outlook for 2024 following a strong performance in the second quarter that exceeded Wall Street’s expectations. The Detroit-based automaker raised its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has increased its targets for operating cash flow and earnings per share, while slightly lowering its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In its second-quarter report, GM reported revenue of $47.9 billion, marking a more than 7% increase from the previous year and surpassing the $45 billion anticipated by analysts. Earnings per share reached $3.06, exceeding the expected $2.71 and reflecting a 60% increase from 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following this announcement, GM’s stock surged nearly 5% in pre-market trading on Tuesday, bringing its total gain for the year to over 37%. Additionally, GM declared a third-quarter cash dividend after the market closed on Monday, further boosting investor confidence.
CEO Mary Barra highlighted the company’s success with gas-powered trucks and SUVs in a letter to shareholders. She emphasized that GM is poised to launch eight new or redesigned models across several categories in North America. Barra also discussed the scaling production of the electric Chevrolet Equinox, while expressing the company’s commitment to “disciplined volume growth” despite earlier comments that GM won’t meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns.
Furthermore, Barra announced that Cruise, GM’s self-driving unit, will discontinue its unmanned Origin vehicle, refocusing efforts on the next-generation Chevrolet Bolt for testing in Texas and Arizona. This shift comes after the company incurred a $600 million charge related to the halted production of the Origin in Detroit.
In a call with analysts, Barra mentioned that using the Bolt would alleviate regulatory concerns regarding the unique design of the Origin, such as its lack of a steering wheel. She noted that this change would also help reduce production costs and allow for better resource optimization.
Moreover, GM is working to restructure its joint venture with SAIC Motor in China, as the company reported a $104 million loss for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles, which is half the number delivered in the same period last year, according to Automotive News.