General Motors has updated its financial targets for 2024 after significantly exceeding Wall Street’s expectations in its second-quarter report. The automaker has raised its projected adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has revised its targets for operating cash flow and earnings per share, while slightly lowering its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase from the same period last year and surpassing Wall Street’s expectation of $45 billion. Earnings per share reached $3.06, exceeding analyst expectations of $2.71 per share and showing a 60% increase compared to the previous year. Net income rose by 14%, totaling $2.9 billion, up from $2.5 billion.
Following the positive financial results, GM’s stock rose nearly 5% in pre-market trading, contributing to an overall increase of more than 37% in 2023. Furthermore, GM announced a third-quarter cash dividend which helped boost its stock price after trading concluded on Monday.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of the company’s gasoline-powered trucks and SUVs and revealed plans to launch eight new or redesigned vehicle models in North America. She emphasized GM’s commitment to scaling production of the electric Chevrolet Equinox, while also acknowledging the challenges faced in reaching its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Barra also discussed changes within GM’s self-driving unit, Cruise, indicating that they will discontinue the Origin vehicle and instead focus on the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to halting production of the Origin in Detroit. Barra stated that utilizing the Bolt addresses regulatory concerns linked to the Origin’s unconventional design and will reduce costs.
“Our vision to transform mobility using autonomous technology is unchanged,” Barra stated, reinforcing Cruise’s AI-first approach. Additionally, GM is working on restructuring its joint venture with SAIC Motor in China, where the company reported a $104 million loss in the second quarter. In June, production was cut by 70%, resulting in the delivery of only 26,000 vehicles, a reduction of 50% from the previous year.