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Published on April 23, 2024
GM Speeds Past Expectations with $3 Billion Q1 Profit, Revs Up Full-Year Forecast Amidst EV Market GainsSource: Wikipedia/Ritcheypro, Public domain, via Wikimedia Commons

General Motors is cruising ahead with profits that rolled past Wall Street's speed bumps, reporting a solid first-quarter net income of $3 billion on a revenue highway of $43 billion, according to the Detroit News. GM's earnings per share of $2.62 easily outpaced the analyst forecast of $2.14, putting the Detroit automaker in the driver's seat to increase its full-year net income outlook.

The company is now to confidently accelerate its full-year forecast, raising it from the previously stated $9.8 billion to $11.2 billion to a revved-up $10.1 billion to $11.5 billion, as Detroit Free Press reported. This bullish move came despite slight declines in overall vehicle sales, as GM looks to lean in on a strong EV game, including promising gains from the Cadillac Lyriq, which saw a 499% increase and a notable 36% leap in new EV deliveries.

GM's financial roadmap originally outlined net income margins for the quarter at 6.9%, up from last year's 6%, but it's the EV market where the company eyes future profit. CEO Mary Barra expressed her confidence in a letter to shareholders gathered by Detroit News, stating, "We also continue to see sequential and year-over-year improvements in profitability as we benefit from scale, material cost and mix improvements."

While the recent results reflect a sturdy performance despite industry headwinds, GM seemingly can't wait to showcase its electric muscle on the market. The automaker, according to an abc12 report, expects its North American EV business to start to generate profit in the latter half of this year, with anticipation for even more profitability into 2025.

CFO Paul Jacobson reinforced this optimism, insisting, "Our consumer has been remarkably resilient in this period of higher interest rates," in statements obtained by Detroit News.

Additionally, GM's self-driving venture Cruise is steered to be back on the streets collecting data, even after having to tap the brakes hard on operations because of a hiccup last year where a self-driving vehicle hit a pedestrian.  GM's big bet of around $8 billion on Cruise since 2016 is still looking for its first dollar in revenue, as reported by Detroit Free Press. Even so, with its eyes keenly on the EV prize, GM's tires on traditional offerings are not losing traction anytime soon. GM reported a healthy 6% jump in retail sales of new vehicles, with a notable average transaction price steadying around $49,500. The truck and SUV segments are still fueling the company's bottom line, as the overall industry gears up for a wider electric horizon.