General Motors has elevated several financial forecasts for 2024 following a strong performance that exceeded Wall Street’s estimates for its second quarter. The Detroit-based automaker now projects adjusted earnings for the year to fall between $13 billion and $15 billion, a raise from its previous range of $12.5 billion to $14.5 billion. In addition, GM has increased its targets for operating cash flow and earnings per share, while slightly lowering expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
The company’s revenue for the second quarter reached $47.9 billion, marking a more than 7% increase compared to the same period last year and surpassing Wall Street’s $45 billion estimate. Earnings per share stood at $3.06, exceeding the anticipated $2.71 per share, and represented a 60% increase over 2023 figures. Additionally, net income rose by 14% to $2.9 billion, up from $2.5 billion.
As a result of these positive financial results, GM’s stock rose nearly 5% in pre-market trading, reflecting an overall increase of more than 37% this year. After Monday’s market closure, GM also announced a cash dividend for the third quarter, which contributed to the stock’s uptick.
In a letter addressed to shareholders, CEO Mary Barra highlighted the strong sales of GM’s gasoline-powered trucks and SUVs. She noted that the company is launching eight new or redesigned models of compact, mid-size, and full-size vehicles in North America. Barra added that GM is ramping up production of the electric Chevrolet Equinox and emphasized the company’s commitment to disciplined growth in electric vehicle (EV) sales despite earlier predictions. She acknowledged that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown, but stated that the company would adapt production based on demand.
Barra also announced a strategic shift for Cruise, GM’s autonomous vehicle division, which will discontinue its Origin vehicle. Instead, Cruise will focus on deploying next-generation Chevrolet Bolt models in testing phases in Texas and Arizona. This decision comes after a $600 million charge related to the halted production of the Origin in Detroit. Barra pointed out that utilizing the Bolt would address regulators’ concerns regarding the Origin’s unconventional design, which lacks a steering wheel, while also reducing costs and optimizing resources.
“Our vision to transform mobility using autonomous technology is unchanged,” Barra stated. “Every mile traveled and every simulation brings us closer because Cruise is fundamentally an AI-first company.”
GM is also in the process of restructuring its joint venture in China with SAIC Motor, as it reports ongoing losses. For the second quarter, the company incurred a $104 million loss in this venture. In June, SAIC-GM significantly reduced production by 70%, delivering only 26,000 vehicles—50% fewer than the previous year, according to automotive industry reports.