General Motors has updated its financial projections for 2024 following a strong second quarter that exceeded Wall Street forecasts. The Detroit-based automaker now anticipates adjusted earnings between $13 billion and $15 billion for the year, an increase from its previous estimate of $12.5 billion to $14.5 billion. GM has also raised its expectations for operating cash flow and earnings per share, though it slightly reduced its net income outlook for shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, reflecting a more than 7% increase from the same period last year and surpassing analysts’ expectations of $45 billion. Earnings per share reached $3.06, exceeding the forecast of $2.71 and representing a 60% increase year-over-year. Net income rose by 14% to $2.9 billion, compared to $2.5 billion in the previous year.
As a result, GM shares experienced a nearly 5% uptick in pre-market trading on Tuesday. The stock has appreciated over 37% this year, buoyed further by the announcement of a third-quarter cash dividend following Monday’s market close.
In her letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs. She emphasized that the company is launching eight new or redesigned models across various size categories in North America. Barra mentioned the ramp-up in production of the electric Chevrolet Equinox, affirming the company’s commitment to disciplined growth in electric vehicle (EV) manufacturing despite earlier statements indicating that GM would not meet its target of producing 1 million EVs in North America by the end of 2025 due to a slowing market. However, she noted that EV sales had increased in the last quarter.
Barra also announced changes to GM’s self-driving unit, Cruise, which experienced setbacks after an operational rollback last October. The company has decided to abandon its Origin vehicle project and will instead focus on the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes with a $600 million charge related to the cessation of the Origin’s production in Detroit.
During a call with analysts, Barra stated that the shift to the Bolt will address regulatory concerns linked to the Origin’s unique design, including its absence of a steering wheel. This approach is expected to reduce unit costs and enhance resource optimization.
Barra reiterated that GM’s mission to redefine transportation through autonomous technology remains steadfast, noting that every mile and simulation brings the company closer to this goal. Additionally, GM is working on restructuring its joint venture with SAIC Motor in China, where losses have persisted, including a $104 million deficit reported for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering 26,000 vehicles—a 50% decline compared to the previous year.