General Motors raised its earnings forecast for this year, citing easing tariff cost pressures and lower losses in its electric vehicle division.
General Motors shares jumped 15 percent on Tuesday, their biggest one-day gain in nearly six years, as investors welcomed the automaker's third-quarter results and the company's signals that 2026 could deliver stronger results.
General Motors CEO Mary Barra said in a letter to shareholders that the company has focused on investing in electric vehicles to meet stringent federal requirements, which have since been largely rescinded by US President Donald Trump. Barra expects the company to incur future tariffs related to electric vehicles, although she said the vehicle segment remains a beacon for the future.
She added that it is now clear that the adoption of electric cars in the near term will be less than planned, citing changing regulations.
She added, By acting quickly and decisively to eliminate excess production capacity, we expect to reduce electric vehicle losses in 2026 and beyond.
The company now expects adjusted annual core earnings to be between $12 billion and $13 billion, compared to its previous estimate of between $10 billion and $12.5 billion.
The Detroit-based company said the tariffs will impact its core earnings less than expected, reducing its updated impact to a range of $3.5 billion to $4.5 billion, down from $4 billion to $5 billion.
