General Motors has increased its financial projections for 2024 after exceeding Wall Street’s expectations for its second-quarter results. The Detroit-based automaker has raised its adjusted earnings forecast for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. It has also heightened its targets for operating cash flow and earnings per share, while slightly lowering the expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported a revenue of $47.9 billion, representing an over 7% increase from the prior year, and surpassing the Wall Street expectation of $45 billion. The company’s earnings per share stood at $3.06, exceeding the anticipated $2.71 and reflecting a 60% rise compared to 2023. Net income rose by 14% to $2.9 billion, a significant increase from $2.5 billion.
Following the announcement, GM’s stock price surged nearly 5% in pre-market trading on Tuesday, contributing to a year-to-date increase of over 37%. The company also declared a third-quarter cash dividend, which further boosted investor sentiment.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and mentioned the company is in the midst of launching eight new or redesigned models across various sizes in North America. She acknowledged the company’s efforts to enhance production of the electric Chevrolet Equinox and emphasized a commitment to disciplined growth in electric vehicle (EV) production.
However, Barra admitted that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to market challenges. The company aims to adapt by producing according to demand, although it reported an increase in EV sales last quarter.
Additionally, Barra shared updates regarding Cruise, GM’s self-driving unit, which had to reduce its operations following an incident last October. The company will discontinue its Origin vehicle and will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the production halt of the Origin in Detroit.
During a call with analysts, Barra stated that using the Bolt would address regulatory concerns about the Origin’s unconventional design, such as the absence of a steering wheel. This change is expected to reduce costs per unit and enhance resource optimization.
GM is also working on restructuring its joint venture in China with SAIC Motor, which has been experiencing financial losses. The company reported a $104 million loss in the second quarter, and in June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles—50% less than the previous year.