General Motors has today lifted its financial outlook for the year and slightly lowered its expected hit from tariffs, as the car maker settles into a more stable trade landscape while confronting a dynamic electric vehicle market and new supply-chain snarls.
The company now expects its annual adjusted core profit to be between $12 billion to $13 billion, compared with its prior estimate of $10 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.
Shares rose 6% in premarket trading.
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.
Revenue for the quarter ended September marginally fell to $48.6 billion from a year earlier.
Barra in 2021 announced the company’s ambition to produce only EVs by 2035, a goal she has since stopped referencing publicly, instead saying customer demand will guide the automaker’s lineup.
Sales of EVs were strong for GM and across the industry in the third quarter, as shoppers raced to take advantage of the tax credit, but they still comprised less than 10% of the company’s overall sales.
To spur on consumer demand, GM planned to offer a programme that would have allowed its dealers to continue offering the tax credit on EV leases. It has since backtracked on the initiative following backlash from US politicians.
Ford also scrapped its programme with the same aim. Other automakers, including Hyundai and Stellantis, are offering incentives to slash the prices consumers pay for their EVs.
