General Motors has increased its financial projections for 2024 following a strong performance in the second quarter that exceeded Wall Street expectations. The Detroit-based automaker has revised its anticipated 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. Additionally, GM has adjusted its targets for operating cash flow and earnings per share, while reducing the expected net income attributable to shareholders by less than 1%, projecting it to be between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, reflecting a year-over-year increase of over 7% and surpassing Wall Street’s forecast of $45 billion. Earnings per share were recorded at $3.06, exceeding the anticipated $2.71 and representing a 60% increase from the previous year. The company also saw a 14% rise in net income, which totaled $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock price rose nearly 5% in pre-market trading, contributing to a more than 37% increase in the stock’s value this year. GM also declared a third-quarter cash dividend, which further bolstered investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the positive reception of GM’s gas-powered trucks and SUVs, noting that the company is launching eight new or redesigned vehicle models in North America. She reaffirmed the company’s commitment to growing the production of the electric Chevrolet Equinox, stating that while GM is pleased with its electric vehicle progress, it remains dedicated to controlled volume growth.
Barra mentioned earlier this month 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 slowdown in the market. However, the company seeks to remain adaptable and “build to demand,” despite a rise in EV sales during the last quarter.
Additionally, Barra announced that Cruise, GM’s self-driving division, would discontinue its Origin vehicle model following operational setbacks last October. Instead, Cruise plans to utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona, allowing the company to address regulatory concerns regarding the Origin’s unconventional design. GM incurred a $600 million charge due to ceasing production of the Origin in Detroit.
Barra emphasized that GM’s vision for transforming mobility through autonomous technology remains steadfast, stating that every mile and simulation brings the company closer to that goal, as Cruise continues to function as an AI-driven enterprise.
GM is also in the process of restructuring its joint venture with SAIC Motor in China, having reported a loss of $104 million for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles, a decrease of 50% compared to the previous year.