General Motors has raised its financial projections for 2024 following strong performance that exceeded Wall Street’s expectations in the second quarter. The automaker now anticipates adjusted earnings between $13 billion and $15 billion, up from a previous range of $12.5 billion to $14.5 billion. Additionally, it has adjusted its expectations for operating cash flow and earnings per share, although estimates for net income attributable to shareholders were slightly lowered to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking over a 7% increase from the previous year and surpassing the $45 billion forecast by analysts. Earnings per share reached $3.06, exceeding the anticipated $2.71 and representing a 60% increase from 2023. Net income also rose by 14% to $2.9 billion, compared to $2.5 billion in the same period last year.
Following this announcement, GM’s stock saw a nearly 5% rise in pre-market trading, bringing its total increase for the year to over 37%. On Monday, GM declared a cash dividend for the third quarter, further boosting the stock’s appeal.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs, as well as the launch of eight new or redesigned vehicle models across various segments in North America. Barra emphasized GM’s commitment to disciplined growth in electric vehicle production, particularly with the Chevrolet Equinox. However, earlier this month, she acknowledged that GM will not meet its target of producing 1 million electric vehicles in North America by the end of 2025, citing a slowdown in the market.
Barra also addressed changes within GM’s self-driving unit, Cruise, which 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 the halt in Origin production. Barra noted that utilizing the Bolt would alleviate regulatory concerns surrounding the unique design of the Origin and would help to reduce costs.
Lastly, GM is working to restructure its joint venture in China with SAIC Motor, as it continues to face losses. The company reported a $104 million loss in the second quarter, while SAIC-GM cut production by 70% in June, delivering 26,000 vehicles—a 50% decrease compared to the previous year.