General Motors has increased several financial projections for 2024 following impressive second-quarter results that exceeded Wall Street expectations.
The Detroit-based automaker has raised its anticipated adjusted earnings for the year to between $13 billion and $15 billion, up from a previous estimate of $12.5 billion to $14.5 billion. Furthermore, GM adjusted its targets for operating cash flow and earnings per share, while slightly lowering the expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking a year-on-year increase of over 7%, surpassing Wall Street’s projected $45 billion. Earnings per share were reported at $3.06, exceeding analysts’ predictions of $2.71 and reflecting a 60% increase from 2023. Net income also saw a 14% rise, climbing to $2.9 billion from $2.5 billion.
Following this announcement, GM’s stock rose nearly 5% in pre-market trading and has gained more than 37% since the beginning of the year. The company also declared a third-quarter cash dividend, which contributed to the stock’s positive momentum.
In a letter to shareholders, CEO Mary Barra emphasized the success of GM’s gasoline-powered trucks and SUVs, mentioning the launch of eight new or redesigned vehicle models in North America. She highlighted the company’s commitment to scaling production of the electric Chevrolet Equinox, affirming GM’s disciplined approach to volume growth despite excitement over EVs.
Earlier in the 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 market slowdown. However, the company reported growth in EV sales during the previous quarter, indicating a focus on flexibility and building according to demand.
Additionally, Barra announced that Cruise, GM’s self-driving division, would discontinue the Origin vehicle after previously scaling back operations following an incident last October. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona, which Barra suggested would address regulatory concerns regarding the Origin’s design and help reduce costs.
Barra reaffirmed the company’s commitment to transforming mobility through autonomous technology, stating that every mile traveled and simulation executed brings Cruise closer to its goals.
Lastly, GM is working to restructure its joint venture with SAIC Motor in China, aiming to mitigate ongoing losses; the automaker reported a $104 million loss in the second quarter. In June, production cuts by SAIC-GM resulted in a 70% reduction, with 26,000 vehicles delivered—50% less than the previous year.