General Motors has increased several financial projections for 2024 after exceeding Wall Street expectations in its second quarter results. The Detroit-based automaker has raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous range of $12.5 billion to $14.5 billion. The company has also revised its targets for operating cash flow and earnings per share. However, it slightly lowered its expectations for net income attributable to shareholders by less than 1%, estimating it will fall between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, representing a more than 7% increase from the same period last year and surpassing the $45 billion anticipated by Wall Street analysts, according to FactSet estimates. Earnings per share came in at $3.06, exceeding the expected $2.71 and showing a 60% growth compared to 2023. The company’s net income rose by 14% to $2.9 billion, up from $2.5 billion.
In pre-market trading on Tuesday, GM’s stock saw a nearly 5% increase and has risen over 37% this year. Following the market close on Monday, GM announced a third-quarter cash dividend, contributing to the stock’s positive performance.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gasoline-powered trucks and SUVs while announcing the launch of eight new or redesigned models in North America. She also mentioned the scaling of production for the electric Chevrolet Equinox, emphasizing GM’s commitment to disciplined growth in electric vehicle production despite recent slowdowns. Barra noted that the company would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 but stated that EV sales had increased in the last quarter.
Additionally, Barra announced a significant shift for Cruise, GM’s self-driving unit, which will abandon its plans for the Origin vehicle after a previous operational rollback. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge linked to the suspension of Origin production in Detroit.
During a call with analysts, Barra explained that relying on the Bolt addresses regulatory concerns regarding the Origin’s unconventional design—specifically its absence of a steering wheel. This strategic move is expected to reduce unit costs and enhance resource allocation.
Barra reaffirmed GM’s commitment to its vision of transforming mobility through autonomous technology, stating that every mile and every simulation gets the company closer to achieving its goals. Furthermore, GM is working to restructure its joint venture with SAIC Motor in China, where it has been experiencing losses, reporting a $104 million loss for the second quarter. In June, production at SAIC-GM was reduced by 70%, resulting in 26,000 vehicle deliveries, which is 50% lower than last year, according to Automotive News.