General Motors has increased several financial projections for 2024 after surpassing Wall Street’s expectations in its second-quarter results.
The Detroit-based automaker has revised its anticipated 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. It also raised targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders, now projected to be between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, representing a more than 7% increase from the previous year and exceeding the $45 billion that analysts had anticipated, according to FactSet estimates. The earnings per share reached $3.06, surpassing the expected $2.71 and marking a 60% increase compared to 2023. Net income also rose by 14% to $2.9 billion, up from $2.5 billion.
Following these announcements, GM’s stock rose by nearly 5% during pre-market trading on Tuesday and has increased more than 37% this year. The company also declared a third-quarter cash dividend after trading closed on Monday, contributing to the stock’s positive momentum.
In a letter to shareholders, GM’s CEO Mary Barra highlighted the success of its gas-powered trucks and SUVs, mentioning the launch of eight new or redesigned compact, mid-size, and full-size models in North America. She also emphasized the scaling production of the electric Chevrolet Equinox and expressed commitment to “disciplined volume growth” despite earlier acknowledging that GM will not meet its goal of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a market slowdown.
Additionally, Barra announced a strategic shift for Cruise, GM’s self-driving division, which is moving away from its Origin vehicle, previously put on hold after an incident last October. The focus will now shift to using the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision prompted GM to take a $600 million charge related to suspending Origin production in Detroit.
Barra noted that adopting the Bolt will address regulatory concerns regarding the unique design of the Origin, which lacks a steering wheel. This change is expected to reduce per-unit costs and optimize resources.
“Our vision to transform mobility using autonomous technology remains unchanged, and every mile traveled, along with every simulation, brings us closer,” Barra stated.
Moreover, GM is working to restructure its joint venture in China with SAIC Motor due to ongoing losses, reporting a loss of $104 million for the second quarter. In June, SAIC-GM significantly reduced its production by 70%, delivering only 26,000 vehicles—50% less than the previous year—according to Automotive News.