General Motors has raised its financial targets for 2024 after exceeding Wall Street expectations in its second quarter. The Detroit-based automaker increased its adjusted earnings forecast for the year, now expecting between $13 billion and $15 billion, compared to the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM improved its estimates for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to a range of $10 billion to $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking over a 7% increase from the prior year and surpassing Wall Street’s expectation of $45 billion. Earnings per share reached $3.06, significantly higher than the $2.71 anticipated by analysts and representing a 60% increase compared to 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion.
Following this news, GM’s stock saw a nearly 5% rise in pre-market trading, contributing to an overall increase of more than 37% in 2023. The automaker also declared a third-quarter cash dividend, further boosting stock performance.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and announced plans to launch eight new or redesigned vehicle models across various sizes in North America. Barra emphasized the commitment to expanding the production of the electric Chevrolet Equinox, vowing to ensure disciplined volume growth despite the excitement surrounding GM’s electric vehicle (EV) offerings. However, she acknowledged that the company would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. GM has expressed a flexible approach, intending to “build to demand,” although EV sales showed growth last quarter.
Barra also shared updates regarding Cruise, GM’s self-driving unit, which previously had to scale back operations following an incident last October. The company has decided to discontinue its Origin vehicle and will instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the cessation of Origin production in Detroit. During a call with analysts, Barra indicated that using the Bolt would address regulatory concerns related to the Origin’s unique design, such as its lack of a steering wheel, while also reducing unit costs and optimizing resources.
Barra reaffirmed GM’s vision of transforming mobility through autonomous technology, highlighting the progress made with Cruise as an AI-focused company. Furthermore, GM is seeking to restructure its partnership in China with SAIC Motor, where it has experienced losses, including a $104 million loss for the second quarter. In June, SAIC-GM cut production by 70%, delivering 26,000 vehicles — a 50% decline from the previous year, as reported by Automotive News.