General Motors shares surge 8% as tariff outlook improves

"General Motors lifted its financial outlook for the year and slightly lowered its expected hit from tariffs, as the automaker awaits expected relief on tariffs in the U.S. while confronting a weakening market for electric vehicles. The company now expects its annual adjusted core profit to be between $12.0 billion to $13.0 billion, compared with its prior estimate of $10.0 billion to $12.5 billion. The Detroit automaker said tariffs would hit its bottom line less than anticipated, lowering its updated impact to a range of $3.5 billion to $4.5 billion, from a previous $4 billion to $5 billion."

"GM's quarterly adjusted earnings per share dropped to $2.80, beating LSEG analysts' expectation of $2.31. The auto giant earlier this month took a $1.6 billion charge from changes to its EV strategy. At the end of September, a $7,500 tax credit on battery-powered models went away, and there has been further loosening of regulations around vehicle emissions. In a letter to shareholders, GM CEO Mary Barra said she expects the company to incur future charges related to EVs."

""By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond," she said."

General Motors raised its annual adjusted core profit forecast to $12.0–$13.0 billion and reduced its estimated tariff hit to $3.5–$4.5 billion. Quarterly adjusted EPS was $2.80, above the LSEG expectation of $2.31, while quarterly revenue slipped to $48.6 billion. The company took a $1.6 billion charge tied to EV strategy changes and lost a $7,500 battery EV tax credit at the end of September. U.S. car sales rose 6% in the third quarter. GM plans to mitigate 35% of anticipated tariff costs and expects to reduce EV losses beginning in 2026 by addressing overcapacity.

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