General Motors has raised its financial projections for 2024 following a strong performance that surpassed Wall Street’s expectations in the second quarter. The Detroit-based automaker now anticipates adjusted earnings between $13 billion and $15 billion, an increase from the previous forecast of $12.5 billion to $14.5 billion. The company also adjusted its targets for operating cash flow and earnings per share. Although expectations for net income attributable to shareholders have been slightly lowered to a range of $10 billion to $11.4 billion, this decrease is less than 1%.
In the second quarter, GM reported revenue of $47.9 billion, reflecting a more than 7% increase year-over-year and exceeding Wall Street’s expectations of $45 billion, according to FactSet estimates. Earnings per share reached $3.06, surpassing the anticipated $2.71 and marking a 60% increase compared to 2023. Net income climbed 14% to $2.9 billion, up from $2.5 billion in the same period last year.
Following the earnings report, GM’s stock saw an almost 5% increase in pre-market trading, contributing to an overall rise of more than 37% in stock value this year. On Monday, GM also announced a cash dividend for the third quarter, further enhancing investor confidence.
In her letter to shareholders, CEO Mary Barra emphasized the strong sales of GM’s gas-powered trucks and SUVs and highlighted the introduction of eight new or redesigned models across various categories in North America. She reaffirmed GM’s commitment to scaling production of the electric Chevrolet Equinox and stated the company is dedicated to disciplined growth in electric vehicle (EV) production.
Earlier this month, Barra 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 slowdown in the market. However, she indicated that the company would adapt to demand while noting that EV sales had increased in the last quarter.
Barra also shared that Cruise, GM’s autonomous driving division, would abandon its Origin vehicle design in favor of the next-generation Chevrolet Bolt for testing in Texas and Arizona. This decision follows a halt in Origin production after a previous incident last October. GM incurred a $600 million charge related to the suspension of the Origin’s production in Detroit.
During a call with analysts, Barra stated that utilizing the Bolt would address regulatory concerns regarding the Origin’s unconventional design, including the absence of a steering wheel. This shift is expected to reduce production costs and allow GM to better allocate resources.
Barra reiterated GM’s commitment to innovation in autonomous technology, emphasizing that every step taken brings the company closer to transforming mobility. On another note, GM is working to restructure its joint venture with SAIC Motor in China as it continues to face financial losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM reduced production by 70%, delivering only 26,000 vehicles, which is half of what was delivered in the previous year.