{"id":35966,"title":"General Motors increases profit guidance due to “resilient” consumers","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-10-23T03:57:49+00:00","modified":"2024-10-23T03:57:49+00:00","canonical_url":"https://stockmark.it/general-motors-increases-profit-guidance-due-to-resilient-consumers/","markdown_url":"https://stockmark.it/general-motors-increases-profit-guidance-due-to-resilient-consumers.md","json_url":"https://stockmark.it/general-motors-increases-profit-guidance-due-to-resilient-consumers.json","category":"Electric Vehicles","categories":["Electric Vehicles","Retail","Transport"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-10-23T045725.391.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"General Motors’ shares have soared after the automaker raised its profit forecast for the full year. This is due to the strong demand for SUVs and trucks.\n\nDue to rising prices and consumer spending, the largest American carmaker by sales now expects a pre-tax profit of between $14 billion and $16 billion, up from midyear’s range of $13 billion to 15 billion.\n\nShares of GM closed at $53.72 on Tuesday evening, up $4.79 or 9.8%. The stock price has increased by almost 50% since the beginning of the year. This is a significant advantage over its competitors Stellantis, and Ford Motor Company whose shares have declined during the same time period.\n\nPaul Jacobson said, “Consumers have been remarkably good to us.”\n\nGM was founded in Detroit in 1908, and produces cars under the Chevrolet GMC and Buick brands.\n\nThe Wall Street estimate of $44.6 billion was surpassed by the third-quarter revenue of 48.8 billion dollars. The automaker reported a pre-tax profit for the three months ending in September of $4.1 billion, up from $3.6 million a year ago.\n\nIt said that it had made progress in achieving profitability for electric vehicles, citing rising sales and a growing market share. The company said its range of redesigned sport utility vehicles are more profitable than previous models. GM assured shareholders on its earnings call that it would build an EV which was profitable before taxes.\n\nFour EVs are available in the Cadillac lineup. The group’s electric sales are up every quarter of this year, as it produces more models. These include the Silverado EV pickup truck and Equinox SUV. EVs accounted only for about 4 percent of the total American deliveries made by the group through the third quarter.\n\nMary Barra, CEO of the company, stated that EV consideration is “much stronger” among luxury customers compared to the mainstream market.\n\nGarrett Nelson, CFRA Research analyst, says GM’s lack of hybrid cars could lead to a loss in market share. Its capital expenditure on EV shift will also hamper its free cashflow.\n\nTotal capital expenditures for the automaker were $2.3 billion during the quarter ending in September. This is down from $2.5 billion about a year earlier.\n\nGM continues to face challenges in China, which is the world’s second largest economy. It posted a $210 million loss in the first six months of the year. In the third quarter, it lost an additional $137 million and plans to restructure operations in that region."}