General Motors has revised several financial targets for 2024 following a strong performance in the second quarter that exceeded Wall Street’s projections. The automaker has increased its forecasted adjusted earnings for the year to a range between $13 billion and $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. It also adjusted its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In its second quarter, GM reported revenues of $47.9 billion, representing over a 7% year-over-year increase and surpassing Wall Street’s $45 billion estimate. Earnings per share reached $3.06, exceeding analyst expectations of $2.71 and increasing 60% from the previous year. Net income rose 14% to $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock rose nearly 5% in pre-market trading, contributing to an overall increase of more than 37% in 2023. After the market closed on Monday, GM also declared a cash dividend for the third quarter, further boosting its stock price.
In a shareholder letter, CEO Mary Barra highlighted the strong sales of the company’s gas-powered trucks and SUVs and indicated that GM is launching eight new or redesigned vehicles in North America. She emphasized the company’s commitment to disciplined growth in electric vehicle production, particularly for the Chevrolet Equinox.
However, Barra noted that GM is unlikely to meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a slowdown in the market. The company plans to adapt by building according to demand, even though its electric vehicle sales did increase last quarter.
Barra also announced changes for GM’s self-driving unit, Cruise, which is moving away from its previously planned Origin vehicle and will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to halting Origin production in Detroit. Barra reiterated the company’s vision for transforming mobility with autonomous technology, stating that Cruise remains committed to advancing in this area.
Additionally, GM is working to restructure its joint venture in China with SAIC Motor, as the venture has reported significant losses, including a $104 million loss in the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles—50% less than the previous year.