General Motors (GM) has raised several financial targets for 2024 following strong performance in the second quarter that exceeded Wall Street expectations. The Detroit automaker has adjusted its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from its previous forecast of $12.5 billion to $14.5 billion. GM has also boosted its targets for operating cash flow and earnings per share, although it slightly lowered its net income expectations for shareholders by less than 1%, now projecting between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking a rise of over 7% compared to the same quarter last year and surpassing the $45 billion that analysts had anticipated, according to FactSet estimates. Earnings per share stood at $3.06, exceeding the expected $2.71 and showing a 60% increase from 2023. The company’s net income rose 14% to $2.9 billion, up from $2.5 billion in the previous year.
Following these disclosures, GM’s stock rose nearly 5% in pre-market trading, with the stock having increased more than 37% this year. The company also announced a cash dividend for the third quarter after trading closed on Monday, contributing to the stock’s positive movement.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, mentioning that the firm is launching eight new or redesigned models—compact, mid-size, and full-size—in North America. She noted the ongoing production ramp-up of the electric Chevrolet Equinox while expressing the company’s commitment to “disciplined volume growth.”
Barra 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 slowdown in the market. The company plans to adapt its production strategy to “build to demand,” although it did see an increase in EV sales last quarter.
In other updates, Barra announced changes to GM’s self-driving unit, Cruise, which recently scaled back its operations following an incident last October. Cruise will no longer pursue its Origin vehicle but will concentrate on testing the next-generation Chevrolet Bolt in Texas and Arizona. GM recorded a $600 million charge related to the suspension of the Origin’s production.
During an analyst call, Barra stated that shifting to the Bolt would address regulatory concerns about the Origin’s unconventional design, such as its lack of a steering wheel. This transition is expected to reduce unit costs and optimize GM’s resources.
GM is also working to restructure its joint venture in China with SAIC Motor as it faces ongoing losses, having reported a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering only 26,000 vehicles—50% less than the previous year, according to Automotive News.