• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Fed rate cuts in September could boost General Motors’ profitability, CFO predicts

by July 23, 2024
written by July 23, 2024

General Motors Co (NYSE: GM) is poised to gain from the Federal Reserve’s anticipated rate cuts beginning in September, according to Paul Jacobson, the company’s Chief Financial Officer. 

In an interview with CNBC, Jacobson highlighted that lower interest rates will reduce monthly car payments, providing a significant boost to the automaker’s performance.

Strong Q2 performance

General Motors recently reported impressive second-quarter results, surpassing analysts’ expectations. 

The company earned $3.06 per share on revenue of $47.97 billion, well above the forecasted $2.75 per share and $45.46 billion in revenue. 

Despite this strong performance, GM’s shares fell 6.0% on Tuesday, reflecting broader market dynamics.

Jacobson credited GM’s robust performance to its successful lineup of full-size pickup trucks, which saw a 3.5% increase in market share during Q2. 

The new Chevy Trax has also been a standout, with sales nearly doubling each month and the model proving more profitable than its predecessor. 

Jacobson emphasized that GM’s current product portfolio is the strongest in its history.

Resilient customer base and EV growth

Jacobson noted that GM’s customers have remained resilient even amid a higher interest rate environment. 

Notably, electric vehicle (EV) sales surged by 40% in Q2, significantly outpacing the industry average growth of 11%. 

GM is on track to produce up to 250,000 EVs in 2024, aiming to achieve variable profit positive status and move closer to EV profitability.

Full-year guidance raised

In light of its strong performance, General Motors has raised its full-year guidance. 

The company now expects pricing to decline by up to 1.5% in the latter half of the year, an improvement from the previously estimated 2.5% decrease. 

Additionally, GM plans to restructure its underperforming operations, including its autonomous vehicle division and its business in China. 

Last month, GM authorized an additional $6 billion for share repurchases.

Market outlook and analyst ratings

Wall Street analysts currently have a consensus “overweight” rating on GM stock, with an average target price of $55. 

This suggests a potential upside of over 20% from current levels. 

The anticipated rate cuts and GM’s strategic initiatives are expected to enhance its financial performance and shareholder value.

Overall, the combination of favorable interest rate adjustments, strong vehicle sales, and strategic restructuring positions General Motors for continued growth and increased profitability in the coming months.

The post Fed rate cuts in September could boost General Motors’ profitability, CFO predicts appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Lack of charging infrastructure hinders electric vehicle adoption in Europe, new poll reveals
next post
Citi upgrades Coinbase stock to Buy with $345 target: Is a 30% gain within reach?

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Kash Patel takes reins at scandal-ridden FBI with ‘America always’ mindset: ‘Let good cops be cops’

    February 21, 2025
  • Trump secures record-shattering $1.4B for political war chest, will be ‘dominant force’ for GOP in midterms

    June 27, 2025
  • Trump tapping 2 House Republicans for future admin fuels concerns about slim possible majority

    November 12, 2024
  • Greenland’s opposition party pushes closer US ties, independence from Denmark as Trump plays big in election

    March 11, 2025
  • Trump marks 100-days in office embroiled in trade battles, deadly wars and hard pressed deals

    April 29, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,385)
  • Investing (634)
  • Stock (844)

Latest Posts

  • Citadel’s Ken Griffin buys a stegosaurus for $45 million in a record auction sale

    July 19, 2024
  • Power outage doesn’t slow down Vance’s prep for Tuesday’s VP debate with Walz

    September 30, 2024
  • Trump cuts off federal resources for law firm that helped fuel 2016 Russia hoax

    March 7, 2025

Recent Posts

  • Here’s what Kash Patel’s former colleagues are saying about him

    December 6, 2024
  • Puerto Rico permits nonbinary gender marker on birth certificates in landmark court decision

    June 3, 2025
  • Pritzker trolls Trump by ‘renaming’ Lake Michigan as ‘Lake Illinois,’ joking he’d annex Green Bay

    February 8, 2025

Editor’s Pick

  • Tesla stock surges 6%: analyst sees more gains ahead

    May 12, 2025
  • Special Counsel Weiss expected to release Hunter Biden report as soon as next week

    January 9, 2025
  • Harris concedes presidential race, campaign manager sends letter to staff: ‘Losing is unfathomably painful’

    November 6, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock