General Motors has raised its financial targets for 2024 following impressive second-quarter results that exceeded Wall Street expectations. The automaker now anticipates adjusted earnings for the year to fall between $13 billion and $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has adjusted its operating cash flow and earnings per share targets, while slightly reducing its net income expectation for shareholders to a range of $10 billion to $11.4 billion.
In the second quarter, GM reported a revenue of $47.9 billion, reflecting over a 7% increase compared to the same period last year and surpassing Wall Street’s projected $45 billion. Earnings per share reached $3.06, exceeding analyst expectations of $2.71 and marking a 60% rise from the previous year. Net income for the quarter increased by 14% to $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock rose nearly 5% in pre-market trading on Tuesday, extending its gains to over 37% for the year. Moreover, GM declared a cash dividend for the third quarter after the market closed on Monday, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs, emphasizing the launch of eight new or redesigned vehicle models across various sizes in North America. Barra also provided updates on the ramp-up of production for the electric Chevrolet Equinox, emphasizing a commitment to measured volume growth despite excitement surrounding electric vehicles.
However, earlier this month, Barra indicated that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a slowdown in the market. The company plans to adapt production to meet demand, though EV sales saw an increase in the last quarter.
Additionally, Barra revealed that Cruise, GM’s self-driving technology division, would abandon its plans for the Origin vehicle, shifting focus to the next-generation Chevrolet Bolt for testing in Texas and Arizona. This shift follows a $600 million charge due to the halt in Origin production. Barra mentioned that using the Bolt would address regulatory concerns regarding the unique design of the Origin, which lacked a traditional steering wheel.
GM is also working on restructuring its joint venture with SAIC Motor in China, as the partnership continues to experience losses, including a $104 million loss in the recent quarter. In June, SAIC-GM reduced production by 70%, delivering only 26,000 vehicles—down 50% from the previous year.