Honestly, if you looked at the headlines a year ago, you'd have thought General Motors was heading for a rough patch. Between the "EV slowdown" and the chaos in the autonomous driving world, things looked a bit shaky. But the gm q3 earnings 2024 report basically flipped that script.
It wasn't just a "beat." It was a statement.
GM pulled in a massive $48.8 billion in revenue for the third quarter of 2024. That’s a 10.5% jump from the year before. While everyone else was worrying about high interest rates and picky consumers, GM was busy selling high-margin trucks and finally figuring out the secret sauce for their electric vehicle (EV) transition.
What happened with the numbers?
The bottom line is actually pretty wild. Net income hit $3.1 billion. Now, on paper, that's a tiny 0.3% dip from 2023, but don't let that fool you. Their EBIT-adjusted (that's earnings before interest and taxes) rose 15.5% to $4.1 billion.
Why the difference?
Basically, GM is getting way more efficient. Their North American operations are a juggernaut right now. We’re talking about an EBIT-adjusted margin of 9.7%. That is a lot of profit per vehicle, mostly fueled by people's endless hunger for big SUVs like the Chevrolet Tahoe and GMC Yukon.
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The EV "Pivot" that actually worked
For a while, GM’s EV strategy felt like it was stuck in first gear. Battery production was slow, and the software was... let’s just say "glitchy." But the gm q3 earnings 2024 results show they’ve turned a corner.
They delivered about 32,000 EVs in the US during the quarter. That’s a 60% jump year-over-year. More importantly, they’ve managed to grab nearly 10% of the US EV market share, putting them in second place behind Tesla.
Mary Barra and her team have been shouting from the rooftops about "variable profitability" on EVs. Essentially, they wanted to make sure they weren't losing money on every electric car that left the factory. According to CFO Paul Jacobson, they improved EV variable profit by over 30 points compared to last year. They’re on track to be "contribution margin positive" on EVs by the end of 2024.
That is a huge deal. It means the electric side of the house is finally starting to pay its own way instead of just eating the profits from the gas-guzzlers.
The China Problem
It's not all sunshine and rainbows, though. China is kind of a mess for GM right now. They reported a $137 million equity loss in China for Q3.
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The market there has changed overnight. Domestic Chinese brands are aggressive, and price wars are brutal. GM is currently restructuring its operations there to try and find a path back to profitability, but it’s definitely the "black sheep" of this earnings report.
Guidance: The "Third Time's a Charm" Raise
The most confident move a company can make is raising its outlook. GM didn't just do it once; they did it for the third time in 2024 during this Q3 call.
- EBIT-adjusted: Now expected between $14 billion and $15 billion (up from $13-$15 billion).
- Adjusted EPS: Expected between $10.00 and $10.50.
- Free Cash Flow: Expected to hit a massive $12.5 billion to $13.5 billion.
When a company has that much cash lying around, they do things like buy back shares. GM has been aggressive here, aiming to get their share count below 1 billion by early 2025. This makes every remaining share more valuable, which is why the stock popped nearly 10% after the announcement.
Cruise is coming back (slowly)
We also got a peek into Cruise, the self-driving unit. It lost $383 million in Q3. That sounds bad, but it’s actually much better than the $732 million it lost in the same quarter last year.
After the high-profile accidents and the grounding of the fleet, Cruise is back on the road in a limited capacity with safety drivers. They aren't generating much revenue yet—only about $26 million—but the "burn rate" is finally under control.
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Why this matters for you
If you're an investor or just someone looking to buy a car, there are a few takeaways. First, the "death of the American automaker" has been greatly exaggerated. GM is proving they can fund the future using the profits from the present.
Second, the price of EVs might actually start to stabilize or even drop. GM is seeing battery costs fall—expecting a $60 per kWh reduction in 2025.
Actionable Insights for Investors:
- Watch the Margins: Keep an eye on the North American EBIT margin. As long as it stays near 10%, GM has the "fuel" to keep innovating.
- The China Pivot: Watch for news on how they restructure the SAIC-GM joint venture. If they can stem the losses in China, the stock has even more room to run.
- EV Scaling: The goal is 200,000 EVs for the full year. If they hit that, it proves their production "bottleneck" era is officially over.
- Capital Returns: With $12B+ in free cash flow, expect more buybacks or potentially a dividend hike in the near future.
The gm q3 earnings 2024 report was a masterclass in execution. They managed to grow revenue, boost margins, and fix their EV production issues all while facing a tough global economy.
Next Steps for Readers:
Check your portfolio's exposure to traditional cyclicals versus "new tech" autos. GM is increasingly bridging the gap between the two. If you're considering an EV, the Q4 rollout of the Equinox EV and Silverado EV variants will be the ultimate test of their new production efficiency.