General Motors lifts forecast as tariff outlook improves

Core Viewpoint - General Motors has raised its financial outlook for the year while reducing the expected impact from tariffs, indicating a more stable trade environment and challenges in the electric vehicle market and supply chain [1][2]. Financial Outlook - The company now anticipates its annual adjusted core profit to be between $12.0 billion and $13.0 billion, an increase from the previous estimate of $10.0 billion to $12.5 billion [2]. - The updated impact of tariffs on the bottom line is now projected to be between $3.5 billion and $4.5 billion, down from the earlier estimate of $4 billion to $5 billion [2]. Market Response - Shares of General Motors rose by 6% in premarket trading following the updated financial outlook [2]. Electric Vehicle Strategy - Earlier in the month, the company recorded a $1.6 billion charge due to changes in its electric vehicle strategy [3]. - The expiration of a $7,500 tax credit for battery-powered models and the loosening of vehicle emissions regulations have contributed to the company's challenges [3]. - CEO Mary Barra indicated that future charges related to electric vehicles are expected, but the company aims to reduce EV losses by addressing overcapacity, with a focus on improvements by 2026 and beyond [3]. Revenue Performance - Revenue for the quarter ending in September slightly decreased to $48.6 billion compared to the same period last year [4].