General Motors has updated its financial projections for 2024 after exceeding Wall Street forecasts in its second-quarter performance.
The Detroit-based automaker has increased its expected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. Additionally, it has revised its targets for operating cash flow and earnings per share. The forecast for net income attributable to shareholders has been slightly decreased by less than 1%, now projected between $10 billion and $11.4 billion.
In the second quarter, GM reported revenues of $47.9 billion, marking an increase of over 7% from the same period last year and surpassing the $45 billion anticipated by analysts, according to FactSet data. The earnings per share stood at $3.06, exceeding the expected $2.71, and representing a 60% increase compared to 2023. The company’s net income rose 14% to $2.9 billion, up from $2.5 billion.
Following the announcements, GM shares rose nearly 5% in pre-market trading on Tuesday and have appreciated over 37% this year. GM announced a third-quarter cash dividend after trading closed on Monday, contributing to the stock’s increase.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of its gas-powered trucks and SUVs. She mentioned that the company is currently launching eight new or redesigned vehicle models across various sizes in North America. Barra also noted the ramp-up of production for the electric Chevrolet Equinox, emphasizing GM’s commitment to disciplined growth in the electric vehicle sector.
Earlier this month, Barra acknowledged that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a slowdown in the market. The company plans to adjust its production to align with demand, although it did see an increase in EV sales last quarter.
Additionally, the CEO announced that Cruise, GM’s self-driving division, has decided to abandon its Origin vehicle prototype, which faced operational setbacks following an incident last October. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the cessation of Origin production in Detroit.
During a call with analysts, Barra explained that the shift to the Bolt would address regulatory concerns regarding the Origin’s unconventional design, such as the absence of a steering wheel. This transition is also expected to reduce costs per unit and allow GM to better allocate resources.
Barra affirmed, “Our vision to transform mobility using autonomous technology is unchanged, and every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company.”
GM is also in the process of restructuring its joint venture in China with SAIC Motor, as it continues to experience losses, posting a $104 million loss in the second quarter. In June, SAIC-GM scaled back production by 70%, delivering 26,000 vehicles—50% fewer than the same time last year, according to industry reports.