General Motors has revised its financial projections for 2024 upward after exceeding Wall Street’s expectations in the second quarter. The automaker has raised its expected adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. Additionally, it has adjusted its targets for operating cash flow and earnings per share, while slightly lowering the net income estimate for shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking an increase of over 7% from the previous year, surpassing Wall Street’s expectation of $45 billion, according to FactSet estimates. Earnings per share reached $3.06, exceeding the analyst estimate of $2.71 and showing a 60% increase compared to 2023. Net income grew by 14%, rising to $2.9 billion from $2.5 billion.
Following the earnings report, GM’s stock rose nearly 5% in pre-market trading on Tuesday and has seen a more than 37% increase in value over the year. The company also declared a third-quarter cash dividend after trading closed on Monday, which contributed to the stock’s upward movement.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs, and noted that the company is launching eight new or redesigned vehicle models in North America. She also mentioned that the production of the electric Chevrolet Equinox is ramping up, emphasizing the company’s commitment to disciplined volume growth in its electric vehicle (EV) segment.
Despite these advancements, Barra noted that GM would not 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 company plans to adapt its production strategy to align with demand, although EV sales did see growth in the last quarter.
Furthermore, Barra announced that Cruise, GM’s self-driving unit, will discontinue its Origin vehicle and instead utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge linked to halting Origin production in Detroit, aimed at addressing regulatory concerns about the vehicle’s design, such as its absence of a steering wheel.
Barra affirmed that GM’s vision for transforming mobility through autonomous technology remains steadfast, stating that each operational mile and simulation moves Cruise closer to its goals.
The automaker is also restructuring its joint venture in China with SAIC Motor, as the collaboration continues to experience losses. In the second quarter, GM reported a loss of $104 million in this division, and in June, SAIC-GM reduced its production by 70%, delivering 26,000 vehicles—50% fewer than the prior year, according to Automotive News.