General Motors has updated its financial projections for 2024 following strong second-quarter results that exceeded Wall Street forecasts. The Detroit-based automaker has increased its expected adjusted earnings for the year to a range of $13 billion to $15 billion, up from the previous guidance of $12.5 billion to $14.5 billion. Additionally, GM has raised its targets for operating cash flow and earnings per share, although it slightly lowered expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In its second-quarter report, GM announced revenues of $47.9 billion, marking an increase of more than 7% year-over-year and surpassing Wall Street’s anticipated $45 billion, according to FactSet estimates. The company’s earnings per share reached $3.06, exceeding the analysts’ expectations of $2.71 and showing a 60% year-over-year increase. Net income rose 14% to $2.9 billion, up from $2.5 billion in the previous year.
Following the announcement, GM’s stock surged nearly 5% in pre-market trading and has risen over 37% throughout the year. Additionally, the company declared a cash dividend for the third quarter, further boosting investor confidence.
In a letter addressed to shareholders, CEO Mary Barra praised the strong performance of GM’s gasoline-powered trucks and SUVs. She mentioned the company’s plans to introduce eight new or redesigned vehicle models in North America. Barra also emphasized GM’s commitment to scaling the production of the electric Chevrolet Equinox while balancing growth systematically.
However, she acknowledged earlier in the month that GM would fall short of its goal to produce 1 million electric vehicles in North America by the end of 2025 due to market challenges. The company has stated its intention to adapt production according to demand, although EV sales showed growth in the last quarter.
Additionally, Barra announced a strategic pivot for Cruise, GM’s self-driving division, which will discontinue the Origin vehicle following a halt in its operations last October. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a $600 million charge related to the suspension of the Origin’s production. Barra explained that using the Bolt would address regulatory concerns about the unique design of the Origin and would help reduce costs and optimize resources.
“Our vision to transform mobility through autonomous technology remains intact, and with each mile traveled and every simulation, we’re moving closer to our goals as an AI-first company,” Barra asserted.
Furthermore, GM is working to restructure its joint venture with SAIC Motor in China, as the partnership continues to incur losses, including a reported loss of $104 million in the second quarter. SAIC-GM significantly reduced production by 70% in June, resulting in only 26,000 vehicle deliveries—50% lower than the previous year, according to Automotive News.