General Motors (GM) has revised its financial targets for 2024 upward, following strong second-quarter results that exceeded Wall Street expectations. The company has increased its projected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous forecast of $12.5 billion to $14.5 billion. Additionally, GM raised its targets for operating cash flow and earnings per share, while slightly lowering the 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, marking a more than 7% increase compared to the previous year and surpassing the anticipated $45 billion. The company’s earnings per share stood at $3.06, exceeding the expected $2.71 by analysts, and reflecting a 60% increase compared to 2023. Net income rose by 14% to $2.9 billion, up from $2.5 billion in the previous year.
As a result of these strong results, GM’s stock surged nearly 5% in pre-market trading on Tuesday, with the stock’s value climbing over 37% this year. On Monday, GM also announced a cash dividend for the third quarter, contributing to the stock’s positive performance.
In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs, stating that the company is planning to launch eight new or redesigned models in North America. She emphasized GM’s commitment to disciplined growth in the electric vehicle (EV) market, specifically mentioning the scaling up of production for the electric Chevrolet Equinox. However, Barra acknowledged that GM will not meet its goal of producing 1 million EVs in North America by the end of 2025 due to a slowdown in the market, though EV sales did see an increase last quarter.
Furthermore, Barra announced a shift for Cruise, GM’s self-driving unit, which will discontinue its Origin vehicle model after a pause in operations following an incident last October. Instead, Cruise will concentrate on using the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the discontinuation of the Origin’s production.
In updates to analysts, Barra stated that using the Bolt would alleviate regulatory concerns regarding the Origin’s unique design, including the absence of a steering wheel. This transition also aims to reduce production costs and enhance resource optimization.
GM is also working on restructuring its joint venture in China with SAIC Motor, as the venture has continued to incur losses, with the company reporting a $104 million loss for the second quarter. Production cuts in June saw SAIC-GM reduce output by 70%, resulting in 26,000 vehicle deliveries—50% less than the same period last year.