General Motors is setting new financial goals for 2024 following its strong performance in the second quarter, which surpassed analysts’ expectations. The automaker has raised its projected 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. It also increased its targets for operating cash flow and earnings per share, while modestly lowering the expectations for net income attributable to shareholders by less than 1%, now estimated between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking a more than 7% increase from the same period last year and exceeding Wall Street’s expectations of $45 billion, according to FactSet. The company’s earnings per share reached $3.06, significantly higher than the anticipated $2.71, reflecting a 60% increase compared to 2023. Net income rose 14% to $2.9 billion from $2.5 billion.
Following these results, GM’s stock surged nearly 5% in pre-market trading on Tuesday, having risen over 37% since the start of the year. After markets closed on Monday, GM announced a cash dividend for the third quarter, further bolstering investor confidence.
In a shareholder letter, CEO Mary Barra praised the success of GM’s gas-powered trucks and SUVs and mentioned the launch of eight new or redesigned compact, mid-size, and full-size models in North America. She highlighted the scaling of production for the electric Chevrolet Equinox, emphasizing that while the company is enthusiastic about its electric vehicles (EVs), it remains committed to disciplined growth in volume.
However, Barra disclosed that GM is unlikely to achieve 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 and “build to demand,” although its EV sales did experience growth last quarter.
Barra also announced changes for Cruise, GM’s self-driving division, which had to scale back its operations after an incident last October. Cruise will cease development of its Origin vehicle and will instead focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM recorded a $600 million charge due to stopping production of the Origin in Detroit.
In a call with analysts, Barra addressed regulatory concerns regarding the unique design of the Origin—specifically, its absence of a steering wheel—indicating that the Bolt would help mitigate these issues. Additionally, she noted that this change would reduce unit costs and allow for better resource optimization.
Furthermore, GM is working on restructuring its joint venture in China with SAIC Motor, which has been reporting losses. The company suffered a $104 million loss in the second quarter, as SAIC-GM reduced production by 70% in June, delivering 26,000 vehicles—50% fewer than the previous year, according to Automotive News.