General Motors is adjusting its financial projections for 2024 following a strong performance that exceeded Wall Street forecasts in the second quarter. The automaker has increased its expected adjusted earnings for the year to a range of $13 billion to $15 billion, surpassing the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM has boosted 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.
For the second quarter, GM reported revenues of $47.9 billion, reflecting a more than 7% increase from the previous year and exceeding the anticipated $45 billion as estimated by FactSet. The earnings per share were reported at $3.06, well above the $2.71 expected by analysts and representing a 60% increase from 2023. Net income rose by 14%, reaching $2.9 billion, compared to $2.5 billion in the same quarter last year.
As a result of the positive news, GM’s stock surged nearly 5% in pre-market trading on Tuesday and has increased by over 37% throughout the year. Following the market close on Monday, the company announced a third-quarter cash dividend, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the successful performance of GM’s gas-powered trucks and SUVs and announced plans to launch eight new or redesigned models in North America. Barra emphasized the company’s commitment to disciplined growth in electric vehicle production, specifically the Chevrolet Equinox, despite earlier indications that GM may not achieve its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. However, electric vehicle sales did see growth in the previous quarter.
In a strategic shift, Barra revealed that Cruise, GM’s self-driving division, will discontinue its Origin vehicle and instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to halting the production of the Origin in Detroit and aims to alleviate regulatory concerns regarding the vehicle’s design, which lacked a steering wheel, while also lowering costs.
Barra reiterated GM’s commitment to advancing autonomous technology, stating, “Our vision to transform mobility using autonomous technology is unchanged, and every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company.”
Finally, GM is working on restructuring its joint venture with SAIC Motor in China, as the company continues to face losses. In the second quarter, GM reported a loss of $104 million from this venture, which saw a production cut of 70% in June, resulting in only 26,000 vehicle deliveries—50% fewer than a year earlier, according to Automotive News.