– EPS beat by 13.3% ($3.06 vs $2.70 expected)
– Revenue beat by 5.8% ($47.97B vs $45.32B expected)
– Total revenue: $47.97B, up 7.2% YoY
– Stock price down nearly 7% after earnings call (on China losses)
Source: SeekingAlpha
Key Takeaways:
Strong ICE performance: North America EBIT adjusted margins of 10.9%, driven by higher wholesale volumes and stable pricing
EV progress: U.S. EV deliveries up 40% YoY, aiming for variable profit positive on EV portfolio in Q4 2024
China challenges: Reported a loss in Q2, expect rest of year to remain challenging
Cost reduction: On track to achieve $2B of net fixed cost savings by end of 2024
Cruise pivot: Focusing on the next-generation Chevrolet Bolt EV instead of Origin, triggering a $600M charge
Forward-Looking Statements and Insights:
Mary Barra, CEO: “Our strategy is to offer our consumers choice. We’ve got an incredible portfolio of vehicles, both EV and ICE, and we’ve got flexibility. So we know we can win more customers as they embrace EVs.”
Paul Jacobson, CFO: “We’re still holding to that, although with the 200K to 250K production, we pulled that from the second-half to the fourth quarter Scale is a big part of what we’re doing. A lot of the battery costs, cell cost improvement that we’ve seen has just been driven by efficiency and scale at the plant.”
