General Motors (GM) shares surged 14% after the automaker raised its 2025 profit forecast, citing relief from lower tariff costs and narrowing EV losses as it rebalances its electric strategy.
🔹 Revised Forecast
- Adjusted EBIT: $12B–$13B (previously $10B–$12.5B)
- Tariff impact cut to $3.5B–$4.5B (from $4B–$5B)
- EPS (Q3): $2.80 vs. $2.31 expected
- Revenue: $48.6B, slightly down YoY
🔹 Strategic Shift
CEO Mary Barra said GM is recalibrating EV plans amid slower adoption and loosened federal mandates, while maintaining EVs as the company’s “North Star.”
The automaker will cancel its BrightDrop electric van program and continue investments in U.S. production to mitigate tariff impacts.
🔹 Sector Boost
Ford and Stellantis shares rose 4% and 3%, respectively, following GM’s announcement.
Analysts called the results a sign of resilience and adaptability in a challenging regulatory and trade environment.
“By acting swiftly to address overcapacity, we expect to reduce EV losses in 2026 and beyond,” Barra told shareholders.