General Motors is projecting a rise in several financial targets for 2024 after significantly surpassing Wall Street forecasts for its second-quarter results.
The automaker has adjusted its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, increasing from a previous estimate of $12.5 billion to $14.5 billion. GM also raised its predictions for operating cash flow and earnings per share, while slightly lowering its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion, a decrease of less than 1%.
For the second quarter, GM reported revenues of $47.9 billion, a more than 7% increase from the previous year and exceeding Wall Street’s projection of $45 billion. Earnings per share reached $3.06, surpassing the expected $2.71 per share and showing a 60% improvement compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following this news, GM’s stock saw an almost 5% increase in pre-market trading, bringing its year-to-date growth to over 37%. Additionally, GM announced a third-quarter cash dividend, which further boosted stock performance.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs, noting the introduction of eight new or redesigned compact, mid-size, and full-size models in North America. She reaffirmed the commitment to expanding production of the electric Chevrolet Equinox, stating, “as excited as we are about our EVs and our early success, we are committed to disciplined volume growth.”
Barra had previously indicated that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. However, the company reported that electric vehicle sales experienced growth last quarter.
In other updates, Barra announced that Cruise, GM’s autonomous driving unit, will abandon its plans for the Origin vehicle and instead focus on deploying the next-generation Chevrolet Bolt for vehicle testing in Texas and Arizona. GM incurred a $600 million charge associated with halting production of the Origin in Detroit.
During an analyst call, Barra mentioned that utilizing the Bolt would address regulatory concerns regarding the unique design of the Origin, particularly its lack of a steering wheel. This change is expected to reduce unit costs and optimize resource allocation.
She emphasized GM’s unwavering vision to transform mobility with autonomous technology, stating that every mile driven and every simulation brings the company closer to its goals, as Cruise continues to operate as an AI-first company.
Additionally, GM is working on restructuring its joint venture in China with SAIC Motor due to ongoing losses, which amounted to $104 million in the second quarter. In June, SAIC-GM scaled back production by 70%, delivering 26,000 vehicles—50% fewer than the previous year.