General Motors has announced an increase in its financial targets for 2024 after surpassing Wall Street’s expectations in its second-quarter results. The Detroit-based automaker has raised its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from an earlier estimate of $12.5 billion to $14.5 billion. Additionally, GM has revised upwards its targets for operating cash flow and earnings per share, though it slightly lowered the expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, reflecting a more than 7% increase compared to the same period last year and exceeding Wall Street’s forecast of $45 billion, according to FactSet. The company’s earnings per share stood at $3.06, surpassing analysts’ expectations of $2.71 per share, and representing a 60% increase from 2023. Net income rose 14% to $2.9 billion, up from $2.5 billion in the previous year.
As a result of these strong results, GM’s stock rose nearly 5% in pre-market trading on Tuesday and has increased by over 37% throughout the year. Following the close of trading on Monday, GM declared a third-quarter cash dividend, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the successful performance of the company’s gas-powered trucks and SUVs. She noted that GM is launching eight new or redesigned models across various size categories in North America and is ramping up the production of the electric Chevrolet Equinox. Barra emphasized the company’s commitment to disciplined growth in electric vehicle production despite acknowledging a slowdown that will prevent GM from meeting its target of producing 1 million electric vehicles in North America by the end of 2025.
Barra also announced a strategic shift for Cruise, GM’s self-driving unit, which recently faced setbacks and will discontinue its Origin vehicle model. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to the halted production of the Origin in Detroit.
In discussing the move, Barra stated that using the Bolt would address regulatory concerns associated with the Origin’s unique design, which lacked a steering wheel. She added that this change would reduce costs per unit and optimize resources for GM.
GM is also restructuring its joint venture in China with SAIC Motor, as it continues to experience losses. The company reported a $104 million loss for the second quarter, with SAIC-GM cutting production by 70% in June, resulting in the delivery of 26,000 vehicles—50% lower than in the previous year.