General Motors has increased several financial projections for 2024 after exceeding Wall Street’s expectations during the second quarter.
The automaker now anticipates adjusted earnings for the year to be between $13 billion and $15 billion, up from a prior estimate of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported a revenue of $47.9 billion, representing more than a 7% year-over-year increase and surpassing the Wall Street estimate of $45 billion, according to FactSet. Earnings per share were reported at $3.06, exceeding the expected $2.71 and showing a 60% improvement over 2023. Net income rose 14% to $2.9 billion from $2.5 billion.
Following these announcements, GM’s stock rose nearly 5% in pre-market trading. The stock has seen an increase of more than 37% this year, bolstered by a third-quarter cash dividend declared after trading closed on Monday.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs, mentioning that the company is launching eight new or redesigned models across different categories in North America. Barra underscored that GM is ramping up production of the electric Chevrolet Equinox, expressing excitement about EVs while emphasizing a focus on disciplined growth.
Barra also acknowledged a setback in GM’s goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown, stating that the company will adapt to demand, even as EV sales increased last quarter.
In addition, Barra revealed that GM’s self-driving division, Cruise, will discontinue its Origin vehicle due to past operational challenges, opting instead to utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. This change follows a $600 million charge related to the halt in Origin production.
During an analyst call, Barra noted that using the Bolt would address regulatory concerns about the Origin’s unconventional design, which lacked a steering wheel. She added that this adjustment would help reduce costs and optimize resources.
Barra reiterated GM’s commitment to advancing its autonomous technology vision, emphasizing the company’s status as an AI-first organization.
Furthermore, GM is working on restructuring its joint venture with SAIC Motor in China, where it has been experiencing losses. The company recorded a $104 million loss for the second quarter, and in June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles—50% fewer than a year earlier.