GM Annual Forecast Tops Estimates Amid Boost from U.S., China

General Motors (GM) reported full-year 2024 net income attributable to shareholders of $6.0 billion and EBIT-adjusted of $14.9 billion, surpassing analysts' estimates. The company's strong performance was driven by robust growth in the U.S. and China markets. In the U.S., GM's market share increased by 17.0% in 2024, with sales rising 21% in the fourth quarter compared to the previous year. EV sales more than doubled, reaching 43,982 units. In China, GM's equity income from its joint ventures increased by 53.7% in the fourth quarter of 2023 compared to the same period in 2022.



GM's positive outlook in the U.S. and China markets can be attributed to several specific factors:

1. U.S. Market:
- Increasing EV Sales: GM's EV sales more than doubled in the fourth quarter of 2024, reaching 43,982 units. This significant growth in the U.S. market is driven by consumer demand for electric vehicles and GM's expanding EV portfolio, including models like the Hummer EV, Chevy Silverado EV, and Cadillac Lyriq.
- Market Share Increase: GM's market share in the U.S. increased by 17.0% in 2024, with sales rising 21% compared to the previous year. This growth is a result of GM's strong product offerings, competitive pricing, and effective marketing strategies.
- Strong Financial Performance: Analysts project earnings per share of $10.34 for GM in fiscal year 2024, a substantial 34.6% increase year-over-year. This positive outlook reflects growing confidence in GM's performance and the company's ability to generate strong earnings in the U.S. market.

2. China Market:
- Expansion of EV Segment: GM's EV segment is expected to be in the black in China, with models like the Hummer EV, Chevy Silverado EV, and Cadillac Lyriq already on the market. This expansion is driven by consumer demand for electric vehicles and GM's investment in battery production and charging infrastructure.
- Battery Production and Vertical Integration: GM's Ultium Drive system and battery plants in Ohio, Tennessee, and Lansing are key to its e-mobility ambitions in China. The company's additional investment in battery production for vertical integration is a strategic move to secure a strong position in the Chinese market.
- Strategic Partnerships: GM's Cruise plans to potentially start charging fares by early 2025 in the U.S., with a strategic partnership with Uber Technologies (NYSE: UBER) set for 2025. This partnership will allow Uber to offer Cruise robotaxis on its platform, further expanding GM's presence in the Chinese market.



In conclusion, GM's strong performance in the U.S. and China markets has contributed positively to its annual forecast. The company's increasing EV sales, market share growth, and strategic investments in battery production and partnerships have driven its positive outlook. As GM continues to expand its EV portfolio and invest in key markets, investors can expect the company to maintain its strong financial performance.