General Motors has updated its financial projections for 2024 following a strong performance that exceeded Wall Street’s expectations for its second quarter. The automaker now expects adjusted earnings between $13 billion and $15 billion, an increase from the previous range of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, although it slightly reduced its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, representing a more than 7% increase from the previous year and surpassing the anticipated $45 billion. Earnings per share reached $3.06, exceeding analyst expectations of $2.71 and marking a 60% increase compared to 2023. The company’s net income grew by 14% to $2.9 billion, up from $2.5 billion.
As a result, GM’s stock rose nearly 5% in pre-market trading on Tuesday, bolstering its year-to-date increase of over 37%. The company also announced a third-quarter cash dividend after the trading closed on Monday, further supporting investor confidence.
In her letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs. She indicated the company is working on launching eight new or redesigned models in North America, while scaling production of the electric Chevrolet Equinox. Barra emphasized GM’s commitment to disciplined growth despite earlier comments suggesting the company would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to market slowdowns.
Furthermore, Barra announced changes to Cruise, GM’s self-driving division, which has had to scale back operations following an incident last October. The unit will discontinue the development of its Origin vehicle and instead focus on using the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge linked to the halt in Origin production in Detroit, and Barra noted that this shift would address regulators’ concerns regarding the unique design of the Origin, helping reduce costs and optimize resources.
Barra reiterated GM’s ongoing commitment to transforming mobility through autonomous technology, stating that every mile and simulation brings the company closer to achieving its objectives. Lastly, GM is working to restructure its joint venture in China with SAIC Motor, which has faced significant losses, reporting a $104 million loss in the second quarter. In June, SAIC-GM reduced production by 70% and delivered 26,000 vehicles, down 50% from the previous year.