General Motors has increased several financial targets for 2024 after exceeding Wall Street’s expectations for its second quarter. The Detroit-based automaker has raised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, a revision from the previous expectation of $12.5 billion to $14.5 billion. Additionally, targets for operating cash flow and earnings per share have been adjusted upward, while net income projections for shareholders were slightly lowered by less than 1%, now expected to be between $10 billion and $11.4 billion.
For the second quarter, GM reported revenues of $47.9 billion, marking a more than 7% increase year-over-year and surpassing the $45 billion forecast by financial analysts. Earnings per share came in at $3.06, exceeding the anticipated $2.71 and indicating a 60% increase compared to 2023. The company’s net income rose 14% to $2.9 billion, up from $2.5 billion.
Following the announcement, GM’s stock rose nearly 5% in pre-market trading, contributing to an over 37% gain for the year. After the market closed on Monday, the automaker declared a cash dividend for the third quarter, further boosting investor confidence.
In a communication to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and mentioned plans to introduce eight new or redesigned models in North America. She also discussed the ramp-up of production for the electric Chevrolet Equinox and emphasized the company’s commitment to disciplined growth in electric vehicle (EV) production despite previous announcements indicating that GM would not meet its goal of producing 1 million EVs in North America by the end of 2025 due to a market slowdown.
Additionally, Barra addressed the future of GM’s self-driving unit, Cruise, which had to scale back operations following an incident last year. The company has decided to abandon its Origin vehicle and will instead focus on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the cessation of Origin production in Detroit.
During a call with analysts, Barra asserted that utilizing the Bolt would address regulatory concerns regarding the unique design of the Origin, which notably lacked a steering wheel. She also noted that this shift would help reduce costs and optimize GM’s resources.
“Our vision to transform mobility using autonomous technology remains steadfast, as each mile traveled and every simulation brings us closer to our goals,” Barra stated.
Moreover, GM is working to restructure its joint venture in China with SAIC Motor, as the venture continues to experience losses, reporting a $104 million loss in the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering 26,000 vehicles—a 50% decrease from the previous year.