General Motors Boosts Profits Amid Slow EV Transition

General Motors reported better-than-expected second-quarter profit and revenue, raising its annual profit forecast. Strong demand for gas-powered trucks is driving profits, while the transition to electric vehicles (EVs) remains slow. The company also received government support for its EV ambitions and is focusing on new battery-powered models.

General Motors reported a second-quarter profit and revenue that exceeded Wall Street's expectations, and raised its annual profit forecast for the second time this year, driven by strong demand and pricing for gas-powered trucks. The Michigan automaker is leaning on gasoline-engine offerings to fuel profits through a slower shifting to electric vehicles.

CFO Paul Jacobson expressed optimism about EV production during a call with reporters. However, GM shares fell 3.5%, erasing premarket gains. The Federal Reserve's report showed motor vehicle production surged in June, the highest in nine years. GM boosted its adjusted pre-tax profit forecast for the year to $13 billion to $15 billion from the previous $12.5 billion to $14.5 billion.

Additionally, GM posted adjusted earnings per share of $3.06, surpassing Wall Street's estimate of $2.75. Revenue for the three-month period was $48 billion, exceeding the consensus of $45.5 billion. Updates on GM's Cruise self-driving unit revealed a focus on developing a next-generation Chevrolet Bolt instead of the Origin vehicle without human controls. Despite rising investor scrutiny, GM remains committed to its EV ambitions, recently scaling up production of the Chevrolet Equinox EV and planning new models.

(With inputs from agencies.)