General Motors has updated its financial projections for 2024 after exceeding Wall Street predictions for its second quarter results. The automaker has raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. Additionally, targets for operating cash flow and earnings per share have been revised upwards. However, expectations for net income attributable to shareholders have been slightly reduced by less than 1%, now estimated between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, representing a more than 7% rise compared to last year, surpassing Wall Street’s estimate of $45 billion. The automaker achieved earnings per share of $3.06, exceeding analyst expectations of $2.71 and reflecting a 60% year-over-year increase. Net income rose 14% to $2.9 billion, up from $2.5 billion in the same period last year.
Following the positive news, GM’s stock rose nearly 5% in pre-market trading, contributing to a 37% increase in stock value since the beginning of the year. On Monday, the company announced a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs. She mentioned the rollout of eight new or redesigned models in North America and emphasized the scaling of production for the electric Chevrolet Equinox, stating that the company is committed to disciplined growth in the electric vehicle (EV) sector despite acknowledging a slowdown in the market. Earlier, Barra indicated that GM would not meet its target of producing 1 million EVs in North America by the end of 2025, but confirmed that EV sales had grown in the last quarter.
Additionally, Barra announced changes for GM’s self-driving division, Cruise, which had to scale back operations following a previous incident. The company will discontinue its Origin vehicle and instead will focus on using the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM took a $600 million charge related to suspending Origin production in Detroit. Barra noted that utilizing the Bolt would address regulatory concerns regarding the unique design of the Origin and reduce costs per unit.
Despite the setbacks, Barra reaffirmed GM’s commitment to transforming mobility through autonomous technology, emphasizing that ongoing simulations bring the company closer to its goals. Furthermore, GM is working to restructure its joint venture in China with SAIC Motor as it continues to face losses, reporting a $104 million loss for the second quarter. In June, production was reduced by 70%, resulting in the delivery of only 26,000 vehicles, a decrease of 50% compared to the previous year.