General Motors Co. stock rose 1.7% in premarket trading Tuesday after the automaker reported better-than expected second-quarter earnings. It also raised its guidance, for the second consecutive time.

The company GM +1.95% reported that earnings growth was driven primarily by the demand for new trucks, SUVs, and other growth initiatives such as Cruise, BrightDrop, and software-defined cars.

We are leading both in commercial and fleet deliveries for the calendar year so far, and growing profitably on international markets like Brazil and Korea, said Chief Executive Mary Barra in a press release.

Detroit-based automaker had a net profit of $2.566 Billion, or 1.83 cents per share, for the third quarter. This is up from $1.692 Billion, or 1.00 cents per share, during the same period last year.

The adjusted earnings per share came in at $1.91, which was higher than the $1.86 FactSet Consensus.

Revenue increased to $44.746 from $35.759 billion, which was also higher than the FactSet consensus of $42.133 billion.

Barra said that “in the North American electric vehicle market we achieved our target of producing 50,000 EVs during the first half year.” With both cell and vehicle manufacturing increasing, we will continue to aim for production of approximately 100,000 EVs by the end of the year.

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A $792 million charge was made to earnings for the new commercial agreements that LG Electronics, and LG Energy Solution have signed with the company.

The company stated that the charge reflects GM’s conscious decision to go beyond the traditional remedies in serving customers during the Chevrolet Bolt EV recall and BoltEUV recall. GM will also take new steps in the future that will lower its costs and increase EV margins.

GM has raised its guidance for the full year and now expects a net income between $9.3 billion and $10.7 billion. This is up from previous guidance of $8.4 to $9.9billion. It now expects an adjusted EPS between $7.15 and $8.15. This is up from the earlier guidance of $6.35 to 7.36.

The company also plans to cut another $1 billion from fixed costs, on top of the already disclosed $2 billion. It will also spend less on capital projects than expected.

The S&P 500 Spx, +0.40% gained 18.6% in the same period.

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