General Motors has announced an upward revision of its financial targets for 2024 after exceeding Wall Street expectations for the second quarter. The Detroit-based automaker now anticipates adjusted earnings for the year will be between $13 billion and $15 billion, an increase from the previous estimate of $12.5 billion to $14.5 billion. The company has also raised its projections for operating cash flow and earnings per share, although it slightly lowered expectations for net income attributable to shareholders to a range of $10 billion to $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking over a 7% rise compared to the same period last year and surpassing the Wall Street estimate of $45 billion, according to FactSet. The company’s earnings per share stood at $3.06, exceeding analyst expectations of $2.71 and representing a 60% increase from 2023. Additionally, net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following the strong financial report, GM shares surged nearly 5% in pre-market trading, contributing to a more than 37% rise in stock value for the year. The company also declared a third-quarter cash dividend, which further boosted its stock price.
In a letter to shareholders, CEO Mary Barra highlighted the successful performance of GM’s gasoline-powered trucks and SUVs, stating that the company is launching eight new or redesigned models in North America. She also mentioned the scaling up of production for the electric Chevrolet Equinox, expressing enthusiasm for their electric vehicles while stressing the importance of disciplined growth.
Earlier this month, Barra acknowledged that GM would not reach its goal of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a market slowdown. However, she noted that EV sales had increased in the last quarter, with the company adopting a flexible approach to production based on demand.
Additionally, Barra announced that GM’s autonomous driving division, Cruise, would discontinue its Origin vehicle project after previously having to scale back operations due to an incident last October. Instead, Cruise will pivot to testing next-generation Chevrolet Bolts in Texas and Arizona, alleviating regulatory concerns regarding the Origin’s unconventional design. This shift is expected to reduce costs per unit and improve resource allocation.
Barra reaffirmed GM’s commitment to transforming mobility through autonomous technology, declaring, “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 working on restructuring its joint venture with SAIC Motor in China, which has been facing losses, including a reported $104 million loss in the second quarter. Earlier this year, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles, a 50% decrease compared to the previous year.