General Motors has revised its financial outlook for 2024 following robust second-quarter results that exceeded Wall Street projections.
The automaker increased its anticipated adjusted earnings for the year to between $13 billion and $15 billion, up from a previous range of $12.5 billion to $14.5 billion. GM also raised its forecasts for operating cash flow and earnings per share. However, it slightly adjusted down its expectations for net income attributable to shareholders, estimating it to be between $10 billion and $11.4 billion, a reduction of less than 1%.
In the second quarter, GM reported revenue of $47.9 billion, marking over a 7% increase from the previous year and surpassing Wall Street’s expectations of $45 billion, according to FactSet estimates. The company’s earnings per share stood at $3.06, exceeding the expected $2.71 and reflecting a 60% increase from 2023. Net income rose by 14% to $2.9 billion, compared to $2.5 billion the previous year.
Following the announcement, GM’s stock rose nearly 5% in pre-market trading and has increased over 37% so far this year. Additionally, GM declared a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs, mentioning that GM is in the process of launching eight new or redesigned vehicles across various segments in North America. She also indicated that production of the electric Chevrolet Equinox is ramping up, stressing a commitment to disciplined growth in electric vehicle (EV) production.
Barra acknowledged that GM would not reach its goal of producing 1 million electric vehicles in North America by the end of 2025, attributing the delay to a slowdown in the market. Despite this, she emphasized that the company’s EV sales saw growth last quarter.
Furthermore, Barra announced a strategic pivot for GM’s self-driving unit, Cruise, which will abandon its Origin vehicle due to previous operational challenges. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM took a $600 million charge associated with halting production of the Origin in Detroit.
During a call with analysts, Barra explained that utilizing the Bolt would address regulatory concerns regarding the Origin’s unconventional design, such as its absence of a steering wheel. This shift will also reduce per-unit costs and enable GM to optimize its resources.
Barra reaffirmed GM’s commitment to transforming mobility through autonomous technology, stating that every mile traveled and simulation brings the company closer to its goals.
In addition, GM is seeking to restructure its joint venture in China with SAIC Motor, as it faces ongoing losses. The company reported a $104 million loss for the second quarter, and in June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles—50% less than the same period last year.