General Motors has raised its financial targets for 2024 after exceeding Wall Street expectations for its second quarter performance. The Detroit-based automaker has adjusted its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has revised its targets for operating cash flow and earnings per share, while expectations for net income attributable to shareholders were slightly reduced, now estimated between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking over a 7% increase compared to last year and surpassing Wall Street’s expectation of $45 billion. Earnings per share reached $3.06, exceeding the $2.71 predicted by analysts, and reflecting a 60% rise from 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock increased nearly 5% in pre-market trading, contributing to a year-to-date gain of more than 37%. Additionally, GM declared a third-quarter cash dividend that further energized the stock.
CEO Mary Barra emphasized the success of GM’s gas-powered trucks and SUVs in a letter to shareholders, highlighting plans to launch eight new or redesigned vehicle models in North America. Barra mentioned the scaling up of production for the electric Chevrolet Equinox, reaffirming the company’s commitment to disciplined growth despite admitting that GM will not achieve its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Furthermore, Barra disclosed that Cruise, GM’s autonomous driving division, would abandon its plans for the Origin vehicle, instead focusing on the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the discontinuation of the Origin’s production in Detroit.
Barra noted that using the Bolt would address regulatory concerns associated with the Origin’s unique design, which lacked a steering wheel, and also reduce costs per unit while optimizing resources.
“Our vision to transform mobility using autonomous technology remains steadfast, as every mile traveled and every simulation brings us closer, as Cruise is an AI-first company,” Barra stated.
In addition, GM is working on restructuring its joint venture with SAIC Motor in China amid ongoing losses, reporting a $104 million loss for the second quarter. SAIC-GM had reduced production by 70% in June, delivering 26,000 vehicles—50% fewer than in the same month the previous year.