General Motors (GM) is set to announce its Q3 2024 results, projecting earnings of $2.45 per share, which marks an 8% increase compared to the previous year.

This earnings report follows GM's recent investor day, where the company highlighted its expected earnings strength for the upcoming year.

GM's disciplined pricing strategy has allowed it to maintain relatively strong vehicle prices, contrasting with other automakers who have increased discounts to stimulate sales.

RBC recently raised its price target for GM stock from $54 to $58, making it one of only two stocks in their coverage to receive an upgrade.

As of Monday, GM's stock fell 0.5% to $48.93, approaching a buy point of $49.86, which is just 2% away from its current price.

For the full year, GM anticipates earnings per share (EPS) of $9.97, reflecting a significant 30% rise from 2023 and surpassing earlier guidance.

Despite strong growth in electric vehicle (EV) sales, GM has faced a decline in total sales during Q3, primarily due to weaker performance in combustion-engine vehicles.

Economic pressures, including rising interest rates, have raised concerns about consumer willingness to pay premium prices for trucks and SUVs.

RBC analyst Tom Narayan noted that GM, along with competitors like Ferrari and Tesla, is well-positioned to navigate potential price deflation, thanks to its low vehicle incentives.

In the last quarter, GM achieved record electric-vehicle deliveries, totaling 32,095 units, which is nearly a 60% increase year-over-year.

Recent trends show a consumer shift towards compact crossovers for their efficiency and lower maintenance costs, which is influencing GM's strategy.

U.S. vehicle delivery data indicates a 2.2% year-over-year drop in GM's sales, largely attributed to an 18% decrease in fleet sales.