General Motors has updated its financial projections for 2024 following a strong second quarter that exceeded Wall Street predictions. The automaker has revised its anticipated adjusted earnings for the year to a range of $13 billion to $15 billion, an increase from the previous estimate of $12.5 billion to $14.5 billion. Additionally, GM raised its targets for operating cash flow and earnings per share, while slightly lowering its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
For the second quarter, GM reported revenue of $47.9 billion, marking an increase of over 7% year-over-year, and surpassing the $45 billion forecast from analysts. The company also achieved earnings per share of $3.06, significantly higher than the anticipated $2.71 per share, reflecting a 60% increase compared to 2023. Net income saw a 14% rise, totaling $2.9 billion, up from $2.5 billion.
Following these results, GM’s stock surged nearly 5% in pre-market trading, contributing to an overall year-to-date increase of more than 37%. The company also announced a cash dividend for the third quarter, which further bolstered its stock value.
In a letter to shareholders, CEO Mary Barra emphasized the strong performance of the company’s traditional gas-powered trucks and SUVs, while also noting plans to introduce eight new or redesigned models across various sizes in North America. Barra highlighted GM’s commitment to scaling production of the electric Chevrolet Equinox and stressed that, despite early successes with electric vehicles, the company remains focused on disciplined growth.
Earlier this month, Barra acknowledged that GM is unlikely to meet its target of producing 1 million electric vehicles in North America by the end of 2025, attributing this to a slowing market. The company has stated its flexibility to “build to demand,” although it did experience growth in EV sales last quarter.
In regards to its self-driving unit, Cruise, which had to scale back operations after an incident last October, Barra announced the decision to discontinue the Origin vehicle. Instead, Cruise will concentrate on utilizing the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge due to the halt in production of the Origin.
During an analyst call, Barra indicated that using the Bolt would address regulatory concerns regarding the Origin’s distinctive design, such as its absence of a steering wheel. This shift is expected to reduce costs per unit and enable better resource optimization.
Barra reiterated GM’s vision to transform mobility through autonomous technology, stating that “every mile traveled and every simulation brings us closer” to this goal, emphasizing that Cruise operates as an AI-first company.
Furthermore, GM is restructuring its joint venture with SAIC Motor in China as it continues to face losses, reporting a $104 million loss for the second quarter. In June, production at SAIC-GM was reduced by 70%, resulting in the delivery of 26,000 vehicles, a 50% decline year-over-year.