The automaker now expects adjusted earnings before interest and taxes to reach $12 billion to $13 billion by 2025, up from its earlier projection of $10 billion to $12.5 billion. This improved outlook follows a surge in sales of high-margin gasoline-powered SUVs and trucks, aided in part by shifts in federal emissions regulations.
In a shareholder letter, CEO Mary Barra expressed gratitude toward former President Donald Trump for extending through 2030 a tariff reduction on certain auto parts imports for manufacturers that build and sell vehicles in the United States. “GM is strongly positioned as we continue investing to expand our already substantial domestic sourcing and manufacturing presence,” Barra stated.
Shares of the Detroit-based automaker climbed 6.7% in premarket trading to $61.90 as of 6:35 a.m. New York time. The stock had gained about 9% year-to-date as of Monday's close, trailing the S&P 500's nearly 15% rise.
The updated guidance reflects how GM is navigating a shifting regulatory landscape involving emissions penalties, electric vehicle subsidies, and import tariffs. These policy shifts have further complicated the company's already uncertain plan to fully electrify its vehicle lineup by 2035—a strategy aimed at competing more effectively with Tesla Inc. and rapidly expanding Chinese automakers. Earlier this month, GM recorded a one-time charge of $1.6 billion to restructure its struggling electric vehicle division.
“It has become evident that near-term electric vehicle adoption will fall short of initial projections,” Barra noted. “By taking swift and decisive action to tackle overcapacity, we aim to reduce EV-related losses starting in 2026.”
For the quarter ending September 30, GM posted adjusted earnings of $2.80 per share, exceeding the $2.27 consensus estimate among analysts but below the $2.96 per share recorded a year earlier—prior to the implementation of the Trump trade agenda.
In China, GM earned $80 million during the latest quarter and $197 million over the first nine months of the year, rebounding from losses of $137 million in the same quarter last year and $347 million during the first three quarters of 2023.