General Motors has updated its financial outlook for 2024 after exceeding Wall Street’s expectations in its second quarter results. The automaker has raised its forecasted adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. GM has also increased its targets for operating cash flow and earnings per share, although it has slightly lowered its 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, reflecting a more than 7% increase from the same period last year and surpassing the $45 billion anticipated by analysts. Earnings per share came in at $3.06, exceeding the expected $2.71 and representing a 60% increase compared to 2023. The company also saw a 14% rise in net income, which reached $2.9 billion, up from $2.5 billion.
Following this announcement, GM’s stock surged nearly 5% in pre-market trading, continuing its upward trend of over 37% this year. Additionally, GM declared a third-quarter cash dividend that further boosted its stock performance.
In a communication to shareholders, CEO Mary Barra highlighted the strong sales of the company’s gas-powered trucks and SUVs. She mentioned that GM is in the process of launching eight new or redesigned models in North America. Barra emphasized the company’s commitment to disciplined growth in electric vehicle (EV) production, particularly for the electric Chevrolet Equinox, despite acknowledging a slowdown in the market that may prevent GM from meeting its goal of producing one million EVs in North America by the end of 2025.
Furthermore, Barra announced that Cruise, GM’s autonomous vehicle division, would cease development of its Origin vehicle, which was previously rolled back after an incident. Instead, the company will concentrate on testing the next-generation Chevrolet Bolt as it conducts trials in Texas and Arizona. GM has taken a $600 million charge related to the discontinuation of the Origin’s production in Detroit.
During the analyst call, Barra noted that shifting to the Bolt would mitigate regulatory concerns regarding the unique design of the Origin, which lacks a steering wheel. This change is expected to reduce costs and optimize resource allocation for GM.
Lastly, GM is restructuring its joint venture in China with SAIC Motor, as it continues to face losses, with a reported loss of $104 million for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles—50% less than the previous year, according to industry reports.