General Motors has elevated its financial forecasts for 2024 after exceeding Wall Street’s expectations in the second quarter. The Detroit-based automaker now anticipates adjusted earnings for the year to fall between $13 billion and $15 billion, an increase from a previous estimate of $12.5 billion to $14.5 billion. It has also raised its targets for operating cash flow and earnings per share, although expectations for net income attributable to shareholders were slightly reduced to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenues of $47.9 billion, marking over a 7% rise compared to the previous year and surpassing the $45 billion forecasted by analysts. Earnings per share stood at $3.06, exceeding the expected $2.71 and showing a 60% improvement from 2023. The company’s net income rose 14% to $2.9 billion, up from $2.5 billion.
Following the positive report, GM’s stock increased nearly 5% in pre-market trading, having surged more than 37% this year. The automaker also announced a cash dividend for the third quarter, further boosting investor confidence.
CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs in her letter to shareholders, emphasizing the launch of eight new or redesigned models in North America. She confirmed that the company is scaling up production of the electric Chevrolet Equinox, while also maintaining a focus on disciplined volume growth.
However, 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. She emphasized the company’s flexibility to “build to demand,” despite a rise in EV sales in the last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving division, will discontinue its Origin vehicle project, which faced operational setbacks last year. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona, following a $600 million charge due to the halt in Origin production.
During a conference call, Barra stated that transitioning to the Bolt would address regulatory concerns regarding the Origin’s unconventional design and would also reduce per-unit costs, allowing GM to optimize resources further.
In ongoing efforts, GM is restructuring its joint venture in China with SAIC Motor, amid continued financial losses. The company reported a $104 million loss for the second quarter, following a significant production cut by SAIC-GM in June, delivering 26,000 vehicles—50% less than the previous year.