General Motors has revised its financial outlook for 2024 after exceeding Wall Street’s expectations in its second-quarter earnings report.
The Detroit-based automaker has increased its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous forecast 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 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, marking more than a 7% increase compared to the prior year and surpassing Wall Street’s estimate of $45 billion. The earnings per share reached $3.06, beating the expected $2.71 and reflecting a 60% rise from the previous year. Net income jumped 14% to $2.9 billion, compared to $2.5 billion last year.
Following the report, GM’s stock saw a nearly 5% increase in pre-market trading and has surged over 37% year-to-date. The company also announced a third-quarter cash dividend, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of the company’s gas-powered trucks and SUVs. She mentioned that GM is in the process of launching eight new or redesigned models across various segments in North America. Barra also discussed the scaling of production for the electric Chevrolet Equinox, emphasizing GM’s commitment to disciplined growth in electric vehicle sales despite market challenges.
Earlier this month, Barra acknowledged that GM is unlikely to meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a slowdown in the market. However, the company plans to be flexible and align production with demand, while EV sales noted growth in the last quarter.
In terms of its autonomous vehicle initiative, Barra announced that Cruise, GM’s self-driving division, will discontinue its Origin vehicle and instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes in the wake of a halted production of the Origin, for which GM recorded a $600 million charge.
Barra indicated that using the Bolt would address regulatory concerns regarding the Origin’s unconventional design, such as the absence of a steering wheel, while also reducing costs and optimizing resources.
She reiterated GM’s ongoing commitment to transforming mobility through autonomous technology, affirming that every mile and simulation brings the company closer to achieving its ambitions.
Additionally, GM is working to restructure its joint venture with SAIC Motor in China after incurring losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles—a 50% decline compared to the previous year.