General Motors is increasing its financial projections for 2024 after significantly exceeding Wall Street’s expectations for the second quarter. The automaker has adjusted its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, while slightly lowering the expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking an increase of more than 7% compared to the same period last year, and surpassing Wall Street’s expectations of $45 billion, as per FactSet estimates. The company posted earnings per share of $3.06, exceeding the anticipated figure of $2.71 and representing a 60% increase from 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following the news, GM’s stock surged nearly 5% in pre-market trading, contributing to a year-to-date rise of over 37%. Last week, GM also announced its third-quarter cash dividend, further boosting investor confidence.
In a message to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and detailed plans to launch eight new or redesigned models across various sizes in North America. Barra emphasized the company’s commitment to disciplined volume growth as they scale production of the electric Chevrolet Equinox, even as she recently indicated 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.
Furthermore, Barra announced that Cruise, GM’s self-driving unit which previously had to retract its operations following an incident last October, will abandon its plans for the Origin vehicle. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for vehicle testing in Texas and Arizona. GM incurred a $600 million charge linked to the halted production of the Origin in Detroit.
During a call with analysts, Barra expressed that utilizing the Bolt would address regulatory concerns regarding the Origin’s unconventional design, which lacked a steering wheel. She stated that this shift would also reduce costs per unit and help optimize resources.
“Our vision to transform mobility using autonomous technology remains constant, and each mile traveled and simulation brings us closer, as Cruise operates as an AI-first company,” Barra declared.
Additionally, GM is working to restructure its joint venture with SAIC Motor in China, where it reported a loss of $104 million for the second quarter. In June, the joint venture, SAIC-GM, reduced production by 70%, delivering 26,000 vehicles—50% fewer than the previous year, according to Automotive News.