GM beats Q3 forecasts, raises 2024 profit outlook

Oct 22

Jack Aylmer Anchor

By Jack Aylmer (Anchor), Alex Delia (Producer), Jack Henry (Video Editor)

General Motors posted a stronger-than-expected profit in the third quarter of 2024, boosting its outlook for the full year. Despite challenges from last year’s United Auto Workers strike, GM’s revenue rose by more than 10%, and the company is on track to achieve record profits.

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GM reported an adjusted profit of $3.4 billion for the third quarter, an increase from $3.2 billion in the same period in 2023.

The company’s revenue climbed to $48.8 billion, surpassing expectations by nearly $800 million. North American customers paid an average of nearly $50,000 per vehicle, highlighting a rise in average transaction prices.

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GM’s strong earnings come in contrast to its performance in China, where the automaker lost $137 million in Q3, due to a 37% drop in sales.

Chinese competition has significantly impacted what was once GM’s largest market. In the electric vehicle space, GM captured 6.6% of the U.S. market in Q3, but Tesla still leads with 48.2% of EV sales.

With shares up over 40% in 2024, GM expects its full-year earnings to top last year’s record.

Tags: carbon emissions, cars, earnings, Electric Vehicle Batteries, Electric vehicles, EV, EV tax credit, General Motors, revenue

[JACK AYLMER]

GENERAL MOTORS IS RIDING HIGH AFTER A VERY STRONG THIRD-QUARTER EARNINGS REPORT, SURPRISING WALL STREET AND RAISING ITS PROFIT OUTLOOK.

THE COMPANY’S REVENUE JUMPED MORE THAN 10-PERCENT TO NEARLY 49 BILLION DOLLARS… EASILY SURPASSING FORECASTS. ADJUSTED PROFIT WAS 3-POINT-4 BILLION… UP FROM 3-POINT-2 BILLION IN THE SAME PERIOD LAST YEAR. EVEN THOUGH THE MANUFACTURER SOLD JUST 5-PERCENT MORE VEHICLES, THE AVERAGE PRICE OF A CAR IS RISING, AND IS NOW CLOSE TO 50 THOUSAND DOLLARS.

LAST YEAR’S STRIKE COST GM OVER A BILLION DOLLARS. THE COMPANY ORIGINALLY RESISTED UNION DEMANDS, SAYING THEY COULDN’T STAY COMPETITIVE. BUT AFTER WEEKS OF NEGOTIATIONS, THEY AGREED TO HISTORIC WAGE INCREASES… AN IMMEDIATE 11-PERCENT RAISE, PLUS 14-PERCENT MORE OVER THE NEXT FOUR YEARS. TODAY… GM SAYS THEY’VE MANAGED TO ABSORB THOSE COSTS.

WHILE THINGS ARE LOOKING UP IN NORTH AMERICA, GM’S BUSINESS IN CHINA IS STRUGGLING. THE AUTOMAKER LOST 137 MILLION DOLLARS THERE IN THE THIRD QUARTER. SALES FELL 37-PERCENT DUE TO GROWING COMPETITION FROM CHINESE BRANDS.

BUT THERE’S ALSO A LOT OF MOVEMENT IN ELECTRIC VEHICLES. GM’S SHARE OF THE U-S ELECTRIC VEHICLE MARKET HIT 6-POINT-6 PERCENT IN Q3 OF 2024. TESLA REMAINS THE DOMINANT FORCE, HOLDING NEARLY 50-PERCENT OF THE MARKET… BUT THE COMPETITION IS CATCHING UP. IN TOTAL, E-V’S ACCOUNTED FOR 7-POINT-3 PERCENT OF ALL NEW CAR SALES IN THE U-S LAST YEAR, AN 18-PERCENT GROWTH FROM LAST YEAR, MOVING NEARLY 14 MILLION CARS ONTO THE ROAD… A NUMBER LIKELY TO BE ECLIPSED IN 2024.

GM EXPECTS 2024 TO BE A RECORD YEAR FOR PROFITS. THE COMPANY’S STOCK HAS ALREADY CLIMBED OVER 40-PERCENT THIS YEAR.

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FOR STRAIGHT ARROW NEWS… I’M JACK AYLMER.