General Motors has raised several financial targets for 2024 following a strong performance that exceeded Wall Street expectations in 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 a previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, although it slightly lowered 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, which represents a more than 7% increase compared to the previous year and tops the Wall Street prediction of $45 billion, according to FactSet estimates. The company’s earnings per share reached $3.06, exceeding analyst expectations of $2.71 per share and marking a 60% increase from 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
As a result of these strong figures, GM’s stock saw a nearly 5% jump in pre-market trading on Tuesday, bringing its year-to-date increase to over 37%. Following the close of trading on Monday, GM also declared a cash dividend for the third quarter, further boosting investor sentiment.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and noted that the company plans to launch eight new or redesigned models across various sizes in North America. She shared that GM is ramping up production of the electric Chevrolet Equinox, emphasizing their commitment to disciplined growth in electric vehicle (EV) production.
Earlier in the month, however, Barra conceded that GM is unlikely to meet its target of producing 1 million electric vehicles in North America by the end of 2025, attributing the delay to a slowdown in the market. Despite this, GM’s EV sales did see growth in the last quarter.
Barra also announced that Cruise, GM’s self-driving division, will discontinue its Origin vehicle due to a previous operational setback. Instead, Cruise will concentrate on using the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM recorded a $600 million loss related to the halt in production of the Origin in Detroit.
During her discussion with analysts, Barra stated that utilizing the Bolt would address regulatory concerns regarding the unique design of the Origin, which lacked a steering wheel. This adjustment is also expected to reduce per-unit costs and enable better resource management.
Barra reaffirmed GM’s commitment to its vision of transforming mobility with autonomous technology, asserting that every mile and simulation brings Cruise closer to its goals, framing it as an AI-first company.
Additionally, GM is working to restructure its joint venture in China with SAIC Motor, as the company continues to face losses; for the second quarter, GM reported a $104 million loss. In June, SAIC-GM cut production by 70%, delivering 26,000 vehicles, which is a 50% decrease from the previous year, according to Automotive News.