DETROIT, July 23 (Reuters) - General Motors ( GM )

reported second-quarter profit and revenue on Tuesday that beat

Wall Street's expectations, and raised its annual profit

forecast for a second time this year, buoyed by strong pricing

and demand for gas-powered trucks.

The Michigan automaker is leaning heavily on its

gasoline-engine offerings to fuel its profits through a

slower-than-anticipated transition to electric vehicles. GM

executives say it has now laid the foundation necessary to meet

ambitious ramp-up targets on EVs.

"We're encouraged by the early results we're seeing in EVs

now that we can build at scale," CFO Paul Jacobson said in a

call with reporters.

GM increased its adjusted pre-tax profit projection for the

year to $13 billion to $15 billion, from its previous range of

$12.5 billion to $14.5 billion.

The company reported adjusted earnings per share of $3.06

that beat Wall Street's average estimate of $2.75, according to

LSEG data. The carmaker reported $48 billion in revenue for the

three-month period, surpassing analysts' consensus of $45.5

billion in the June quarter.

GM was one of the automakers affected by a cyberattack that

hit auto dealerships across the U.S. last month. The attack,

which temporarily dampened sales at U.S. dealerships, did not

weaken GM's quarterly results. Executives reported a 14%

increase in net income over the year-ago period to $2.9 billion.

GM's stock has outperformed its rivals and the S&P 500 in

2024. The company's share price has increased 38% this year,

while cross-town rival Ford Motor ( F ) has notched an 18%

increase, and Jeep-maker Stellantis ( STLA ) lost 11%.

EV INVESTMENTS AND RETREAT

GM received another cash boost from the U.S. government

this summer to support its EV ambitions, although it has walked

back many of its targets during the last year.

The Biden administration said this month that it would award

GM $500 million to convert one of its Michigan gas-engine

vehicle-assembly plants to produce EVs.

GM last week declined to reiterate a target of achieving 1

million units of EV production capacity in North America by the

end of 2025. The carmaker also recently lowered its projected EV

output for the year, now projecting the higher end of its 2024

production to be 250,000 units, down from a prior forecast of

300,000 units.

Still, GM executives said the company is scaling up

production of the Chevrolet Equinox EV and plans to launch

several new battery-powered models over the coming months.

Although the Detroit automaker has keep its sights set on

transitioning its lineup to EVs, CEO Mary Barra has said it

plans to introduce plug-in hybrids in 2027. Ford is currently

benefiting from significant increases in hybrid sales.

Ford is set to release its second-quarter results Wednesday.

The outcome of the U.S. presidential election in November

will also likely affect GM's plans for battery-powered vehicles.

Former President Donald Trump has criticized President Joe

Biden's approach on EVs, which have included significant

government subsidies.

GM is also facing increasing investor scrutiny on its

operations in China, which in the past decade have shifted from

being a profit engine to a drain on the company's finances.

GM recorded a $104-million loss in China for the quarter.

Jacobson addressed the company's losses in China, and said

it would be working with its joint-venture partner there to

restructure its business.

"It's clear that the steps that we have taken, while

significant, have not been enough," Jacobson said.

Last month, a leading automotive analyst called on the

Detroit Three to withdraw from China to save cash to spend on

costly EV production.