General Motors (GM) has upgraded its financial projections for 2024 after exceeding Wall Street’s expectations for the second quarter. The automaker has revised its anticipated adjusted earnings to between $13 billion and $15 billion, an increase from a previous range of $12.5 billion to $14.5 billion. Additionally, GM has raised 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 the second quarter, GM reported revenue of $47.9 billion, a more than 7% increase from the previous year, surpassing Wall Street predictions of $45 billion, according to FactSet estimates. Earnings per share came in at $3.06, exceeding the expected $2.71 and reflecting a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following this news, GM’s stock rose nearly 5% in pre-market trading and has increased by over 37% throughout the year. After the market closed on Monday, GM also declared a cash dividend for the third quarter, further boosting the stock’s appeal.
In a message to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, and mentioned the upcoming launch of eight new or redesigned vehicle models in North America. She also emphasized the company’s focus on scalable production of the electric Chevrolet Equinox, stating, “as excited as we are about our EVs and our early success, we are committed to disciplined volume growth.”
Earlier this month, Barra acknowledged that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. The company plans to adapt its production to meet demand, although it did see an increase in EV sales in the last quarter.
Additionally, Barra announced changes at Cruise, GM’s self-driving unit, which will no longer pursue the development of its Origin vehicle. Instead, Cruise will shift its focus to the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to halting production of the Origin in Detroit.
During an analyst call, Barra stated that utilizing the Bolt would address regulatory concerns regarding the unique design of the Origin, such as its lack of a steering wheel. This change is expected to reduce per-unit costs and optimize GM’s resources.
Barra affirmed GM’s commitment to its vision of transforming mobility through autonomous technology, stating, “Our vision to transform mobility using autonomous technology is unchanged, and every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company.”
Moreover, GM is working to restructure its joint venture with SAIC Motor in China, as it continues to experience losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70% and delivered 26,000 vehicles, which is half compared to the previous year, according to Automotive News.