General Motors has revised its financial targets for 2024 after surpassing Wall Street’s expectations in the second quarter. The automaker now anticipates adjusted earnings between $13 billion and $15 billion, an increase from the previous range of $12.5 billion to $14.5 billion. It has also raised its projections for operating cash flow and earnings per share, although the forecast for net income attributable to shareholders has been slightly reduced to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, representing a more than 7% rise from the previous year and exceeding the $45 billion forecast. Earnings per share reached $3.06, outperforming analysts’ predictions of $2.71 and marking a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following this announcement, GM’s stock price surged nearly 5% in pre-market trading on Tuesday, contributing to an overall 37% increase in stock value this year. Additionally, GM declared a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of the company’s gas-powered trucks and SUVs and revealed plans to launch eight new or redesigned models in North America. She emphasized the ongoing production scale-up of the electric Chevrolet Equinox and reiterated GM’s commitment to disciplined growth in the electric vehicle sector.
However, Barra acknowledged that GM will not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. The company intends to adapt its production strategy to align with market demand, even though EV sales did experience growth last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving unit, would discontinue its Origin vehicle model and instead will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. The decision follows a previous setback that forced Cruise to scale back operations. GM also recorded a $600 million expense related to the production halt of the Origin in Detroit.
Barra stated that this shift would address regulatory concerns regarding the Origin’s unconventional design, including its absence of a steering wheel, while also reducing unit costs and optimizing resources. She affirmed that GM’s vision to advance mobility through autonomous technology remains steadfast.
Lastly, GM is working on restructuring its joint venture with SAIC Motor in China, where it faced losses amounting to $104 million in the second quarter. Production cuts at SAIC-GM resulted in a 70% reduction, leading to the delivery of only 26,000 vehicles—50% less than the same period last year, according to industry reports.