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General Motors Stock Surges After Positive First-Quarter Earnings
General Motors (GM) experienced a substantial surge in its stock price, rising nearly 5% on Tuesday morning. This increase follows the announcement of better-than-expected first-quarter earnings by the automotive giant. In addition to surpassing earnings projections, GM also raised its full-year forecasts and revealed a decrease in the cost of batteries utilized in their electric vehicles.
Financial Performance Details
The company reported that its earnings per share for the first quarter had risen by 18.5% to $2.62, with a revenue growth of almost 8% to $43.01 billion. Analysts had previously estimated earnings per share at $2.13, with total sales reaching $41.09 billion. GM has adjusted its automotive free cash flow forecast to a range between $8.5 billion and $10.5 billion, up from the initial estimate of $8 billion to $10 billion. Furthermore, the anticipated adjusted earnings have been raised to $12.5 billion to $14.5 billion, equivalent to $9 to $10 per share, compared to the previous projection of $12 billion to $14 billion or $8.50 to $9.50 per share.
Global Sales Performance
Despite experiencing a 1.5% decline in first-quarter U.S. vehicle sales to 594,233 units, GM delivered over 441,000 vehicles in China during the same period. This hints at the company’s strong presence and performance in key international markets.
Future Plans and Innovation
GM CEO Mary Barra emphasized the company’s commitment to innovation and future growth. In a shareholder letter, she mentioned that the firm’s self-driving car subsidiary, Cruise, has resumed operations in Phoenix to gather additional road and mapping data. This move comes after a temporary suspension of the autonomous fleet in November due to an incident in San Francisco where a pedestrian was hit. Barra highlighted the importance of this step in validating and enhancing GM’s self-driving technology, which has already accumulated over 5 million driverless miles prior to the pause.
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