General Motors has raised several financial targets for 2024 after exceeding Wall Street expectations for its second quarter results. The automaker has adjusted its expected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous forecast of $12.5 billion to $14.5 billion. Additionally, it has revised its targets for operating cash flow and earnings per share, while slightly lowering the expected net income attributable to shareholders to between $10 billion and $11.4 billion.
In its second quarter, GM reported revenue of $47.9 billion—more than a 7% increase from the previous year and surpassing the Wall Street expectation of $45 billion. Earnings per share stood at $3.06, exceeding the analysts’ forecast of $2.71 and representing a 60% increase compared to 2023. Net income increased by 14%, reaching $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock surged nearly 5% in pre-market trading on Tuesday, contributing to a 37% rise in stock value this year. After the market closed on Monday, GM announced a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs and mentioned the company’s plans to launch eight new or redesigned models across various sizes in North America. She emphasized that GM is ramping up production of the electric Chevrolet Equinox, expressing excitement about their electric vehicle (EV) prospects while committing to disciplined growth.
Earlier this month, Barra acknowledged that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. However, the company remains flexible and plans to adapt production to customer demand, though EV sales did see growth in the last quarter.
Furthermore, Barra announced changes for Cruise, GM’s self-driving division, which had to scale back operations following an incident last October. Cruise will now focus on the next-generation Chevrolet Bolt instead of the Origin vehicle, which will help address regulatory concerns related to the unique design of the Origin, including its lack of a steering wheel. This strategy is expected to reduce costs and optimize resources.
GM is also working to restructure its joint venture with SAIC Motor in China, where it has experienced losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM significantly reduced production, delivering only 26,000 vehicles—half of what was delivered a year earlier.