General Motors has increased several financial outlooks for 2024 after exceeding Wall Street’s expectations during the second quarter. The automaker has raised its adjusted earnings forecast 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, targets for operating cash flow and earnings per share have been elevated, while expectations for net income attributable to shareholders have been slightly reduced to between $10 billion and $11.4 billion.
For the second quarter, GM achieved a revenue of $47.9 billion, marking a more than 7% increase compared to the previous year and surpassing Wall Street’s expectation of $45 billion, according to FactSet estimates. The earnings per share reached $3.06, exceeding the $2.71 forecast by analysts and showing a 60% increase compared to 2023. Net income grew by 14% to $2.9 billion, up from $2.5 billion.
In pre-market trading on Tuesday, GM’s stock rose nearly 5%, adding to a year-to-date increase of more than 37%. After the market closed on Monday, the company announced a cash dividend for the third quarter, contributing to the stock’s rise.
CEO Mary Barra highlighted the company’s success with gas-powered trucks and SUVs in a letter to shareholders, noting the upcoming launch of eight new or redesigned models in North America. She emphasized GM’s commitment to disciplined growth in electric vehicle (EV) production, while also acknowledging that the target of producing 1 million electric vehicles in North America by the end of 2025 will not be met due to market slowdowns. Despite this, GM has reported growth in its EV sales last quarter.
Barra announced that Cruise, GM’s self-driving division, would discontinue its Origin vehicle, opting instead to use the next-generation Chevrolet Bolt for testing in Texas and Arizona. The company incurred a $600 million charge related to the stoppage of Origin production in Detroit. Barra stated that using the Bolt would address regulatory concerns regarding the unique design of the Origin and would help reduce costs and improve resource allocation.
GM is also working to restructure its joint venture with SAIC Motor in China, as the company continues to face losses, including a $104 million loss in the second quarter. Production was cut by 70% in June, resulting in only 26,000 vehicle deliveries, which is a 50% decrease compared to the previous year, according to Automotive News.