General Motors has raised several financial projections for 2024 after exceeding Wall Street’s expectations during its second quarter. The automaker, based in Detroit, has increased its expected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous forecast of $12.5 billion to $14.5 billion. In addition, GM has raised its targets for operating cash flow and earnings per share, while slightly reducing its 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, which represents a more than 7% year-over-year increase and surpasses Wall Street’s anticipated $45 billion, as per FactSet estimates. The company’s earnings per share stood at $3.06, exceeding analysts’ expectations of $2.71 and reflecting a 60% increase compared to 2023. Net income rose 14% to reach $2.9 billion, up from $2.5 billion.
Following this announcement, GM’s stock surged nearly 5% in pre-market trading on Tuesday and has seen an increase of more than 37% so far this year. On Monday, GM also declared a cash dividend for the third quarter, which further fueled interest in the stock.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs, stating that GM is launching eight new or redesigned models in North America, spanning compact, mid-size, and full-size categories. Barra mentioned that GM is ramping up production of the electric Chevrolet Equinox, emphasizing a commitment to disciplined volume growth while expressing excitement over the early success of their electric vehicles.
Earlier in the month, Barra acknowledged that GM is unlikely to meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a slowdown in the market. The automaker has pledged to remain flexible and operate based on demand, though its electric vehicle sales saw growth in the last quarter.
Barra also announced that Cruise, GM’s self-driving unit, will discontinue its Origin vehicle program following an operational setback last October. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing its autonomous vehicles in Texas and Arizona. The company incurred a $600 million charge associated with halting production of the Origin in Detroit.
During an analyst call, Barra explained that transitioning to the Bolt will address regulatory concerns regarding the unique design of the Origin, particularly its lack of a steering wheel. She also noted that this shift would reduce costs per unit and allow GM to better allocate resources.
Barra reaffirmed GM’s vision of transforming mobility through autonomous technology, stating that “each mile traveled, and every simulation, brings us closer because Cruise is an AI-first company.”
Additionally, GM is working to restructure its joint venture with SAIC Motor in China amid continued losses; the company reported a $104 million loss for the second quarter. Earlier in June, SAIC-GM reduced production by 70%, resulting in deliveries of just 26,000 vehicles, marking a 50% decline compared to the previous year.