General Motors has revised its financial projections for 2024 upward following a strong second quarter that exceeded Wall Street’s expectations. The automaker has increased its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, up from a prior estimate of $12.5 billion to $14.5 billion. Additional targets for operating cash flow and earnings per share have also been lifted, while the forecast for net income attributable to shareholders has been slightly decreased by less than 1%, now projected between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking an over 7% increase year-over-year and surpassing the $45 billion forecasted by analysts according to FactSet. Earnings per share reached $3.06, exceeding expectations of $2.71 and representing a substantial 60% increase from the same period in 2023. Net income rose 14% to $2.9 billion compared to $2.5 billion the previous year.
In pre-market trading on Tuesday, GM’s stock rose nearly 5%, having increased more than 37% so far this year. Following market closure on Monday, the company announced a third-quarter cash dividend, contributing to the stock’s upward momentum.
In a message to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and mentioned plans to launch eight new or redesigned models across compact, mid-size, and full-size categories in North America. She also emphasized the ramp-up in production of the electric Chevrolet Equinox, stating, “as excited as we are about our EVs and our early success, we are committed to disciplined volume growth.”
Earlier in the month, Barra acknowledged that GM would likely not meet its target of manufacturing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. The company has committed to being flexible and “build to demand,” though it did see an increase in EV sales during the last quarter.
In addition, Barra announced that Cruise, GM’s self-driving unit, has decided to abandon its Origin vehicle project, which had faced operational issues following an incident last October. Instead, Cruise will focus on utilizing the next-generation Chevrolet Bolt for vehicle testing in Texas and Arizona. This decision has resulted in a $600 million charge for halting the Origin’s production in Detroit.
During an analyst call, Barra noted that the transition to using the Bolt will address regulatory concerns regarding the Origin’s unconventional design, such as its absence of a steering wheel. This move is also expected to reduce costs per unit and enhance resource optimization.
Barra reiterated GM’s commitment to transforming mobility through autonomous technology, stating that “every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company.”
Finally, GM is also working to restructure its joint venture in China with SAIC Motor as it continues to face losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering 26,000 vehicles—50% fewer than the prior year, according to Automotive News.