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GM Raises 2025 Outlook After Q3 Beat, Trims Tariff Hit as It Scales Back EV Expansion

Tariff revisions alongside an EV reset are reshaping the automaker’s cost profile.

Overview

  • GM posted adjusted EPS of $2.80 on roughly $48.6 billion in revenue, topping forecasts even as net income fell on one‑time items.
  • Full‑year targets increased to adjusted EBIT of $12–13 billion and adjusted EPS of $9.75–$10.50, with stronger cash flow guidance.
  • Estimated 2025 tariff impact narrowed to $3.5–$4.5 billion, Q3 tariff costs were $1.1 billion, and GM expects to offset about 35% after recent policy changes that include an MSRP offset program praised by CEO Mary Barra.
  • GM recorded a $1.6 billion EV‑related charge ($1.2 billion non‑cash and about $400 million cash) and is cutting near‑term EV capacity after subsidy changes, saying it aims to reduce EV losses in 2026 though additional charges remain possible.
  • U.S. sales rose about 8% to 710,347 units with trucks and SUVs boosting the best market share since 2017; EV deliveries hit a record 66,501 before the tax credit expired, and shares jumped in the low‑ to mid‑teens as management also cited supply‑chain risks, including issues tied to chipmaker Nexperia.