Honestly, if you just glanced at the headlines back in July, you might've thought General Motors was just having another decent "business as usual" summer. But the GM Q2 2024 earnings report was actually a bit of a monster. We are talking about record-shattering revenue and a profit jump that made most analysts do a double-take.
While the rest of the world was worrying about an "EV slowdown," Mary Barra and her team were busy cashing checks from gas-guzzling trucks while quietly scaling their electric fleet. It’s a weirdly effective "two-step" strategy that’s working better than anyone expected.
The Heavy Hitters: $48 Billion in a Single Quarter
Let’s get the big numbers out of the way because they’re kind of staggering. GM pulled in $48 billion in revenue for the second quarter of 2024. That isn’t just a high number; it’s a record for the company.
Their net income hit $2.9 billion. That’s a 14% jump from the previous year. If you look at the adjusted EBIT (earnings before interest and taxes), it was $4.4 billion.
Why does this matter? Because everyone kept saying the "Detroit Three" would struggle once the post-pandemic supply chain boom cooled off. Instead, GM basically said, "Hold my beer." They didn't just meet expectations; they crushed the consensus estimates, coming in at $3.06 per share when Wall Street was only looking for around $2.67.
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Why the stock didn't just moon
You'd think a record-breaking quarter would send the stock into the stratosphere. It didn't. In fact, shares actually dipped shortly after the announcement.
There's a reason for that. Investors are a nervous bunch, and they spotted two major "potholes" in the report: China and Cruise.
- The China Problem: GM lost $104 million in China during Q2. For a long time, China was the golden goose. Now? Local brands like BYD are eating everyone’s lunch.
- The Cruise Charge: GM took a $600 million hit because they decided to officially kill off the "Origin" robotaxi (the one without a steering wheel).
What’s Actually Selling? (Hint: It’s Not Just EVs)
While the media loves to talk about the Silverado EV and the Hummer, the real heroes of the GM Q2 2024 earnings were the internal combustion engine (ICE) vehicles.
North America is carrying the entire company on its back right now. The profit margin in North America was a beefy 10.9%. That’s largely because people are still obsessed with the Chevrolet Silverado and the GMC Sierra.
But there’s a sleeper hit you might have missed: the Chevrolet Trax. It’s a small, affordable SUV that starts around $21,000. It’s selling like crazy because, let’s be real, everything else is too expensive right now. GM is proving they can make money at the bottom of the market and the top.
The EV "Pivot" that isn't a Pivot
Mary Barra is still all-in on electrics, but the tone has shifted. They delivered about 22,000 EVs in the U.S. during Q2. That’s a 40% jump year-over-year.
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They are aiming to build 200,000 to 250,000 EVs by the end of the year. The big goal? Achieving "positive variable profit" on EVs by Q4. Basically, they want to stop losing money on every battery they bolt into a chassis.
Why GM Raised Its Guidance (Again)
For the second time in 2024, GM raised its full-year outlook. They are now projecting an adjusted EBIT of $13 billion to $15 billion.
That is a lot of confidence.
It tells you that they don't see the U.S. consumer breaking anytime soon. They've been able to keep incentives (discounts) lower than the industry average. While other car companies are slashing prices to move metal, GM is holding relatively firm.
The $6 Billion Buyback
Nothing says "we have too much cash" like a massive stock buyback. Along with the earnings, GM authorized another $6 billion for buybacks.
This is a classic move to keep investors happy while the company navigates the messy transition to electric vehicles. By reducing the number of shares, they make the remaining shares more valuable. It’s a signal that they think the stock is undervalued.
What This Means for You (The Actionable Part)
If you’re looking at the GM Q2 2024 earnings as a roadmap for the future, there are a few things to keep an eye on.
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First, the "China turnaround" is likely a myth. Don't expect that region to contribute to the bottom line anytime soon. GM is restructuring there, which is corporate-speak for "shrinking."
Second, the EV transition is going to be slow and expensive. But GM is one of the few legacy players that actually has the cash flow from gas trucks to fund the experiment.
Strategic Next Steps
- Watch the Inventory: If you see GM dealer lots starting to overflow with trucks, the party is over. For now, they are keeping supply tight to keep prices high.
- Monitor the Bolt EV: Since they killed the Origin robotaxi, Cruise is switching to the next-gen Bolt. The success of that car will be a huge indicator of GM's ability to dominate the "affordable EV" space.
- Pay Attention to Interest Rates: GM Financial is a huge part of the business. If rates stay high, those $50,000 truck loans get a lot harder for the average person to stomach.
The bottom line is that GM is currently a tale of two companies. One is a highly efficient, cash-generating machine built on 20th-century tech. The other is a high-stakes, multi-billion dollar bet on the 21st century. Q2 2024 proved that the old machine still has plenty of gas in the tank.
Next steps for tracking your investment:
- Review the full GM Q2 2024 earnings transcript to see Paul Jacobson’s specific comments on "variable profit" targets for December.
- Compare GM’s North American margins against Ford’s Q2 results to see who is actually winning the truck war.
- Check the latest U.S. EV registration data to see if the Cadillac LYRIQ is maintaining its momentum into the second half of the year.