General Motors has raised several financial targets for 2024 after exceeding Wall Street’s expectations for its second quarter. The Detroit-based automaker has increased its projected adjusted earnings for the year to between $13 billion and $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. In addition, it revised upward its targets for operating cash flow and earnings per share, while slightly lowering 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, representing a more than 7% increase from the previous year and surpassing the anticipated $45 billion, according to FactSet. Earnings per share reached $3.06, exceeding the $2.71 per share forecasted by analysts and marking a 60% increase from 2023. Net income rose 14%, reaching $2.9 billion, up from $2.5 billion.
Following this news, GM’s stock jumped nearly 5% in pre-market trading, with a year-to-date increase of over 37%. The company announced a cash dividend for the third quarter, contributing to the stock’s rise.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and mentioned the company’s plans to launch eight new or redesigned models in North America. She emphasized that GM is increasing production of the electric Chevrolet Equinox and reiterated the company’s commitment to disciplined volume growth despite earlier comments indicating a delay in reaching its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Barra also announced that Cruise, GM’s autonomous driving unit, would no longer pursue its Origin vehicle, which had been scaled back after a previous incident. Instead, the focus will shift to using the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the suspension of Origin production in Detroit.
Barra stated that using the Bolt addresses regulatory concerns about the Origin’s unique design and will help reduce per-unit costs while optimizing resources. She reaffirmed GM’s commitment to transforming mobility through autonomous technology, stating that each advancement brings the company closer to its vision.
Additionally, GM is working to restructure its joint venture with SAIC Motor in China, where it has reported losses, including a $104 million loss for the second quarter. In June, SAIC-GM significantly cut production, delivering 26,000 vehicles—50% less than the previous year.