General Motors has updated its financial projections for 2024 after exceeding Wall Street’s expectations for the second quarter. The automaker increased its forecast for adjusted earnings to a range of $13 billion to $15 billion, up from a previous estimate of $12.5 billion to $14.5 billion. Additionally, it raised targets for operating cash flow and earnings per share, although expectations for net income attributable to shareholders were slightly reduced by less than 1%, now projected between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, reflecting a more than 7% increase year-over-year and surpassing the $45 billion forecast from analysts, according to FactSet estimates. Earnings per share reached $3.06, exceeding the anticipated $2.71 and representing a 60% increase from 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following the earnings report, GM’s stock rose nearly 5% in pre-market trading, contributing to an overall increase of more than 37% this year. The company announced a third-quarter cash dividend, further boosting investor confidence.
In a shareholder letter, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs. She also revealed plans to launch eight new or redesigned vehicle models across different categories in North America. Additionally, Barra mentioned that GM is ramping up production of the electric Chevrolet Equinox, emphasizing a balanced approach to growth in electric vehicle (EV) production despite an earlier acknowledgment of a delay in reaching its goal of producing 1 million EVs in North America by the end of 2025.
Barra also announced that GM’s self-driving unit, Cruise, will no longer pursue its Origin vehicle and will shift focus to the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge linked to the halted production of the Origin, a vehicle criticized for its unconventional design.
During a call with analysts, Barra expressed confidence in Cruise’s future as an AI-first company, emphasizing that the vision for transforming mobility through autonomous technology remains intact.
In addition, GM is working to restructure its joint venture in China with SAIC Motor due to ongoing financial losses. The company recorded a loss of $104 million in the second quarter, and in June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles, which is half the number delivered a year earlier, according to Automotive News.