General Motors has revised its financial targets for 2024, following a strong performance that exceeded Wall Street’s predictions in the second quarter. The Detroit-based automaker increased its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, while slightly reducing expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking an increase of over 7% from the previous year and surpassing Wall Street’s expectations of $45 billion. Earnings per share reached $3.06, exceeding the anticipated $2.71 and showing a 60% increase compared to 2023. The company’s net income climbed 14% to $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock rose nearly 5% in pre-market trading, bringing its year-to-date increase to over 37%. The company also declared a cash dividend for the third quarter, which contributed to the stock’s momentum.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and announced that the company is launching eight new or redesigned vehicle models in North America. She stated that GM is actively scaling production of the electric Chevrolet Equinox, emphasizing a commitment to “disciplined volume growth” despite earlier comments that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a slowing market.
Barra also revealed that Cruise, GM’s self-driving unit, will discontinue its plans for the Origin vehicle and instead focus on using 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. The CEO noted that utilizing the Bolt addresses regulatory concerns about the Origin’s unconventional design, such as the absence of a steering wheel, and will help reduce per-unit costs and improve resource management.
Barra reaffirmed GM’s commitment to advancing mobility through autonomous technology, stating, “Our vision to transform mobility using autonomous technology is unchanged.”
On another front, GM is restructuring its joint venture with SAIC Motor in China, where it reported a loss of $104 million for the second quarter. Earlier this year, SAIC-GM significantly cut production by 70%, delivering 26,000 vehicles, which is 50% lower than the previous year.