General Motors is adjusting its financial forecasts for 2024 following a strong performance in its second quarter, surpassing Wall Street expectations. The automaker now projects adjusted earnings for the year between $13 billion and $15 billion, an increase from a previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, while slightly lowering 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, which represents a more than 7% increase compared to the previous year and exceeds the anticipated $45 billion. Earnings per share reached $3.06, surpassing the $2.71 forecast by analysts and marking a 60% increase from 2023. Net income rose by 14%, totaling $2.9 billion, up from $2.5 billion last year.
Following the announcement, GM’s stock rose nearly 5% in pre-market trading and has increased over 37% this year. Additionally, the company declared a third-quarter cash dividend which contributed to the stock’s uplift.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, while also announcing plans to launch eight new or redesigned models in North America. Barra emphasized the company’s commitment to disciplined volume growth for its electric vehicles, specifically mentioning the ramp-up of production for the electric Chevrolet Equinox. However, she noted that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown, and the company intends to be flexible in its production strategy.
Furthermore, Barra announced changes for Cruise, GM’s self-driving division, which has experienced setbacks and will now discontinue the development of its Origin vehicle. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. This shift is expected to address regulatory concerns linked to the Origin’s unique design while also reducing operational costs.
Barra reaffirmed GM’s commitment to transforming mobility through autonomous technology, stating that each mile and simulation brings the company closer to its goals. The automaker is also working to restructure its joint venture in China with SAIC Motor amid ongoing losses, reporting a $104 million loss in the second quarter. In light of these challenges, SAIC-GM significantly cut production by 70% in June, delivering 26,000 vehicles—50% less than the previous year.