General Motors stock stalls despite strong quarter financials
General Motors (NYSE:GM) stock was in reverse on Tuesday, despite quarterly financials that beat Wall Street’s expectations.
Revenue came in at $47.97 billion, up 7.2% compared to the same period last year, whilst earnings (adjusted EBITDA) per share was reported at $3.06, beating a market consensus forecast of $2.75.
GM highlighted strong sales of its gas-powered trucks and better sales prices, whilst upgrading its full year profit forecast for 2024 to between $13 billion and $15 billion, from $12.5 billion to $14.5 billion.
And, despite delays, it also stuck with the prior estimate for EV production – at 200,000 to 250,000 EVs in North America by the end of 2024.
But, the opening of a new EV truck plant in Michigan has now been delayed to ‘mid-2026’.
It also flagged the need for higher marketing spend and an anticipated increase in input costs (due to higher underlying commodity costs).
In New York, GM shares fell $3.23 or 6.53% to change hands at $46.33.
Technology, AI and robotaxis
“As excited as we are about our EVs and our early success, we are committed to disciplined volume growth, which is the key to earning positive variable profits from our portfolio in the fourth quarter, which remains our goal,” chief executive Mary Bara said in GM’s accompanying letter to shareholders.
At the same time, the motor company confirmed it is stalling production of the Cruise Origin driverless ‘robotaxi’, but will stick with a version of the Chevy Bolt EV which its Cruise business unit has already been using.
Bara added: “Our vision to transform mobility using autonomous technology is unchanged, and every mile traveled, and every simulation, brings us closer because Cruise is an AI-first company.
“Cruise has returned to the road in Houston, Phoenix and Dallas and we recently made several significant leadership appointments, including hiring Marc Whitten as CEO. Marc has decades of experience on the frontlines of technology transformations.
“The Cruise team will also simplify their path to scale by focusing their next autonomous vehicle on the next-generation Chevrolet Bolt, instead of the Origin.
“This addresses the regulatory uncertainty we faced with the Origin because of its unique design. In addition, per-unit costs will be much lower, which will help Cruise optimize its resources.”
