General Motors has upgraded its financial forecasts for 2024 following impressive second-quarter results that exceeded Wall Street predictions. The automaker now anticipates adjusted earnings between $13 billion and $15 billion, a rise from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM has increased its operating cash flow and earnings per share targets, while slightly reducing expectations for net income attributable to shareholders to a range of $10 billion to $11.4 billion.
In terms of revenue, GM posted $47.9 billion for the second quarter, which marks an over 7% increase from the prior year and surpasses the $45 billion anticipated by analysts. Earnings per share reached $3.06, exceeding the expected $2.71 and representing a 60% increase compared to 2023. The company’s net income rose by 14%, reaching $2.9 billion, up from $2.5 billion.
Following this positive financial news, GM’s stock surged nearly 5% in pre-market trading on Tuesday and has risen more than 37% this year. After Monday’s market close, GM also declared a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs, mentioning plans to launch eight new or redesigned vehicle models across various segments in North America. Barra also stated that GM is ramping up production of the electric Chevrolet Equinox, while emphasizing a commitment to disciplined growth in electric vehicle (EV) production despite earlier remarks about not meeting the target of 1 million EVs in North America by the end of 2025, attributing this to a slowing market.
Furthermore, Barra announced a strategic shift for Cruise, GM’s self-driving unit, which will discontinue its Origin vehicle and focus instead on the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision comes after Cruise faced regulatory challenges and a $600 million production halt related to the Origin. Barra indicated that this change will address regulatory concerns regarding the unique design of the Origin, which lacks a steering wheel, while also reducing production costs.
GM is also working to restructure its joint venture in China with SAIC Motor, as the company reported a $104 million loss in the second quarter. The venture dramatically reduced production by 70% in June, delivering only 26,000 vehicles, which is a 50% decline compared to the previous year.