General Motors has updated its financial projections for 2024 after exceeding Wall Street’s expectations for its second quarter. The Detroit-based automaker now anticipates adjusted earnings for the year to be 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, while slightly lowering the expectations for net income attributable to shareholders by less than 1%, now forecasted at between $10 billion and $11.4 billion.
GM reported second-quarter revenue of $47.9 billion, marking a more than 7% year-over-year increase that surpassed Wall Street’s anticipated $45 billion, as per FactSet estimates. Earnings per share stood at $3.06, exceeding the expected $2.71 per share and demonstrating a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock rose nearly 5% in pre-market trading on Tuesday and has increased over 37% year-to-date. The automaker also declared a cash dividend for the third quarter after market close on Monday, contributing to the stock’s upward momentum.
In a letter to shareholders, CEO Mary Barra highlighted the robust performance of its gasoline-powered trucks and SUVs, announcing plans to launch eight new or redesigned compact, mid-size, and full-size models in North America. She stated that GM is increasing production of the electric Chevrolet Equinox, emphasizing the company’s commitment to disciplined volume growth despite earlier comments indicating that the goal of producing 1 million electric vehicles in North America by the end of 2025 may not be met due to a market slowdown.
Barra also indicated that Cruise, GM’s self-driving subsidiary, will discontinue its Origin vehicle after scaling back operations last October due to an incident. Instead, Cruise will focus on the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge linked to the halted production of the Origin.
Barra explained that this strategy would address regulatory concerns regarding the Origin’s unconventional design, such as its absence of a steering wheel, and would enable GM to lower costs per unit and enhance resource optimization. She reaffirmed the company’s vision to advance mobility through autonomous technology, stating that each mile traveled and simulation brings them closer to that goal.
Additionally, GM is working to restructure its joint venture in China with SAIC Motor, as it continues to face losses; the company reported a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, resulting in only 26,000 vehicle deliveries, which is 50% less compared to the previous year, according to Automotive News.