General Motors has increased several financial projections for 2024 following a strong second-quarter performance that exceeded Wall Street’s expectations.
The Detroit-based manufacturer now anticipates adjusted earnings for the year to fall between $13 billion and $15 billion, up from a previous estimate of $12.5 billion to $14.5 billion. It has also raised its projections for operating cash flow and earnings per share, although expectations for net income attributable to shareholders have been slightly revised downward to a range of $10 billion to $11.4 billion.
The company’s revenue for the second quarter reached $47.9 billion, marking an increase of more than 7% compared to the same period last year. This figure surpasses the anticipated $45 billion, as noted by FactSet estimates. Earnings per share came in at $3.06, significantly higher than analysts’ expectations of $2.71, and represent a 60% increase over 2023. Net income rose by 14%, totaling $2.9 billion, up from $2.5 billion.
As a result of this positive news, GM’s stock rose nearly 5% in pre-market trading on Tuesday, bringing the stock’s year-to-date increase to over 37%. The company also declared a third-quarter cash dividend after the market closed on Monday, further boosting its stock price.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs. She mentioned the launch of eight new or redesigned vehicle models in North America, including compact, mid-size, and full-size options. Barra also provided updates on the electric Chevrolet Equinox, emphasizing that while the company is eager about its electric vehicles and early successes, it remains committed to a disciplined approach to volume growth.
Earlier in the month, Barra acknowledged that GM would not reach its goal of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns. However, she assured that the company would remain flexible and produce according to demand, even as EV sales saw growth in the last quarter.
Furthermore, Barra announced that Cruise, GM’s autonomous driving division, would abandon its Origin vehicle project, shifting focus to the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge due to the production halt of the Origin in Detroit. During an analyst call, Barra explained that the decision to use the Bolt would address regulatory concerns regarding the Origin’s unconventional design, such as its absence of a steering wheel. This pivot is intended to reduce per-unit costs and help the company better allocate resources.
Barra reiterated GM’s commitment to transforming mobility through autonomous technology, stating that every mile and simulation brings the company closer to its goals, with Cruise operating as an AI-first enterprise.
Additionally, GM is working to restructure its joint venture with SAIC Motor in China, where it continues to face losses. The company reported a $104 million loss for the second quarter, while SAIC-GM drastically reduced production by 70% in June, delivering only 26,000 vehicles—a 50% decline compared to the previous year, according to Automotive News.