General Motors has elevated several financial targets for 2024 after exceeding analysts’ expectations for its second quarter. The Detroit-based automaker now anticipates adjusted earnings to fall between $13 billion and $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. It has also raised its operating cash flow and earnings per share targets, though its outlook for net income attributable to shareholders has been slightly reduced by less than 1%, now expected to be between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking over a 7% increase from the previous year and surpassing Wall Street’s estimate of $45 billion. Earnings per share reached $3.06, exceeding the anticipated $2.71 and reflecting a 60% increase from 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
In pre-market trading on Tuesday, GM’s stock surged nearly 5% and has gained more than 37% this year. Following Monday’s trading session, GM announced a cash dividend for the third quarter, further invigorating the stock.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs, while also mentioning the launch of eight new or redesigned compact, mid-size, and full-size models in North America. Barra emphasized GM’s commitment to disciplined growth in electric vehicle production, particularly for the electric Chevrolet Equinox. Despite an earlier statement indicating that GM will not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown, the company reported growth in EV sales last quarter.
Barra also disclosed that Cruise, GM’s self-driving unit that previously scaled back its operations following a controversial incident last October, will abandon its plans for the Origin vehicle. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the suspension of Origin production in Detroit.
During a call with analysts, Barra reassured that transitioning to the Bolt will address regulatory concerns associated with the unique design of the Origin and will reduce per-unit costs, allowing GM to optimize resources.
“Our vision to transform mobility using autonomous technology is unchanged, and every mile traveled, along with every simulation, brings us closer because Cruise is an AI-first company,” Barra stated.
Additionally, GM is working on restructuring its joint venture with SAIC Motor in China as it faces ongoing losses, including 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, as reported by Automotive News.