General Motors has revised its financial outlook for 2024, increasing several targets after exceeding Wall Street expectations in the second quarter. The Detroit-based automaker has raised its projected adjusted earnings for the year to between $13 billion and $15 billion, an increase from the previous estimate of $12.5 billion to $14.5 billion. Additionally, targets for operating cash flow and earnings per share have also been updated. However, the forecast for net income attributable to shareholders has been slightly reduced to between $10 billion and $11.4 billion.
In terms of revenue, GM reported $47.9 billion for the second quarter, marking a more than 7% growth compared to the same period last year and surpassing the $45 billion anticipated by analysts. Earnings per share reached $3.06, exceeding the expected $2.71 and reflecting a 60% increase from 2023. Net income also rose by 14%, reaching $2.9 billion, up from $2.5 billion.
As a result of these positive financials, GM’s stock surged nearly 5% in pre-market trading on Tuesday, with shares increasing over 37% year-to-date. Following the close of trading on Monday, GM announced a cash dividend for the third quarter, further bolstering investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the success of the company’s gas-powered trucks and SUVs, and shared that GM is set to launch eight new or redesigned models across various sizes in North America. She emphasized the ramp-up in production of the electric Chevrolet Equinox while maintaining a commitment to disciplined growth, despite earlier statements indicating that GM would not reach its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown.
Furthermore, Barra announced that Cruise, GM’s autonomous vehicle division, would discontinue its Origin vehicle model in response to recent operational setbacks. Instead, the company will focus on deploying the next-generation Chevrolet Bolt in tests in Texas and Arizona. This strategic pivot is expected to address regulatory concerns regarding the unique design of the Origin, which lacked a steering wheel, and will also help reduce costs and optimize resources.
“Our vision to transform mobility using autonomous technology is unchanged,” Barra stated, emphasizing that every advancement moves the company closer to its goals as Cruise operates as an AI-first enterprise.
Additionally, GM is working on restructuring its joint venture with SAIC Motor in China, amid ongoing losses. The company reported a $104 million loss for the second quarter, a challenging situation highlighted by SAIC-GM’s significant production cut of 70%, leading to the delivery of only 26,000 vehicles—50% lower than the previous year, according to Automotive News.