General Motors has revised its financial outlook for 2024 following strong performance that exceeded Wall Street expectations in the second quarter. The automaker increased its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM adjusted its forecasts 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.
For the second quarter, GM reported revenue of $47.9 billion, a rise of more than 7% from the previous year and surpassing Wall Street’s forecast of $45 billion. Earnings per share reached $3.06, exceeding the anticipated $2.71 and reflecting a 60% increase compared to 2023. Net income rose 14% to $2.9 billion, compared to $2.5 billion in the same period last year.
Following the announcement, GM’s stock surged nearly 5% in pre-market trading and has increased more than 37% this year. The company declared a third-quarter cash dividend, providing additional support to its stock price.
In a letter to shareholders, CEO Mary Barra highlighted the strong sales of GM’s gas-powered trucks and SUVs. She noted that the company plans to launch eight new or redesigned models across various sizes in North America. Barra emphasized GM’s commitment to disciplined growth in electric vehicle production, particularly for the electric Chevrolet Equinox, despite earlier statements that the company would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to market challenges.
Barra also announced a strategic shift for Cruise, GM’s self-driving division, which will discontinue its Origin vehicle project after a previous setback. Instead, Cruise will utilize the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM has taken a $600 million charge due to the suspension of Origin production in Detroit.
During a recent analysts’ call, Barra stated that the decision to use the Bolt addresses regulatory concerns regarding the Origin’s design, which lacked a steering wheel. This change is expected to lower costs per unit and optimize resource allocation.
Additionally, GM is working to restructure its joint venture with SAIC Motor in China, as they have faced financial losses, including a $104 million loss reported in the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering 26,000 vehicles—50% fewer than the previous year.