General Motors has raised several financial targets for 2024 after exceeding Wall Street’s expectations for its second-quarter performance.
The Detroit-based automaker increased its projected adjusted earnings for the year to between $13 billion and $15 billion, up from the earlier estimate of $12.5 billion to $14.5 billion. Additionally, GM has heightened its targets for operating cash flow and earnings per share. However, expectations for net income attributable to shareholders have been slightly adjusted downwards by less than 1%, now expected to be in the range of $10 billion to $11.4 billion.
Revenue for the second quarter reached $47.9 billion, marking a more than 7% increase compared to last year. This figure also surpassed Wall Street’s expectations of $45 billion, as per FactSet estimates. Earnings per share rose to $3.06, surpassing analysts’ predictions of $2.71 per share and showing a 60% increase from 2023. Net income climbed 14% to $2.9 billion, up from $2.5 billion.
GM’s stock surged almost 5% in pre-market trading Tuesday and has risen over 37% this year. After Monday’s market close, GM announced a third-quarter cash dividend, which gave the stock an additional boost.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs. She also mentioned that the company is in the process of launching eight new or redesigned models across various sizes in North America. Barra emphasized GM’s commitment to scaling the production of the electric Chevrolet Equinox, stating that despite early successes in EVs, the company remains committed to disciplined volume growth.
Earlier this month, Barra disclosed that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. However, the company has stated it will remain flexible and “build to demand,” with EV sales still showing growth last quarter.
Barra also announced changes within GM’s self-driving unit, Cruise. Following an operational rollback after an incident in October, Cruise will cease production of its Origin vehicle and refocus on the next-generation Chevrolet Bolt, which will be tested in Texas and Arizona. This pivot will address regulators’ concerns about Origin’s unique design and reduce per unit costs, allowing better resource optimization.
“Our vision to transform mobility using autonomous technology remains unchanged, and every mile traveled and every simulation brings us closer to that goal because Cruise is an AI-first company,” Barra reiterated.
GM is also working to restructure its joint venture in China with SAIC Motor amidst ongoing losses, including a $104 million loss in the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles—50% less than the same period last year.