General Motors has raised several financial projections for 2024 after surpassing Wall Street’s expectations for its second quarter results. The Detroit-based automaker increased its anticipated adjusted earnings for the year to between $13 billion and $15 billion, revised upward from $12.5 billion to $14.5 billion, and also boosted targets for operating cash flow and earnings per share. However, the forecast for net income attributable to shareholders was slightly lowered by less than 1%, now ranging from $10 billion to $11.4 billion.
In the second quarter, GM’s revenue reached $47.9 billion, exceeding the previous year’s figures by more than 7% and surpassing Wall Street’s expectation of $45 billion, according to estimates from FactSet. The earnings per share stood at $3.06, exceeding analysts’ projections of $2.71 and marking a significant 60% increase compared to 2023. Net income saw a 14% rise to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock jumped nearly 5% in pre-market trading and has increased over 37% this year. After closing Monday’s trading session, GM declared a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gasoline-powered trucks and SUVs. She noted that GM is in the process of rolling out eight new or redesign models of compact, mid-size, and full-size vehicles in North America. Barra also pointed out that the production of the electric Chevrolet Equinox is ramping up, reaffirming the company’s commitment to disciplined electric vehicle (EV) growth.
Barra had previously acknowledged that GM will not meet its goal of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a market slowdown. The company plans to be flexible in its production strategy and “build to demand,” although EV sales did increase in the last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving unit, would discontinue its Origin vehicle, which faced operational challenges after an incident last October. Instead, Cruise will focus on testing with the next-generation Chevrolet Bolt in Texas and Arizona. GM has incurred a $600 million charge related to halting production of the Origin in Detroit.
During an analyst call, Barra mentioned that utilizing the Bolt would address regulatory concerns regarding the Origin’s unconventional design, such as its absence of a steering wheel. This decision is expected to reduce unit costs and help GM optimize its resources.
“Our vision to transform mobility using autonomous technology remains unchanged,” Barra stated. “Every mile traveled and every simulation brings us closer, as Cruise continues to operate as an AI-focused company.”
Furthermore, GM is working on restructuring its joint venture in China with SAIC Motor, as it grapples with ongoing losses, recording a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles—50% fewer than the same period last year, as reported by Automotive News.