GM Soars Most in Five Years as Truck Demand Spurs Outlook Boost

Core Insights - General Motors (GM) has raised its profit guidance due to increased sales of high-margin gas-powered SUVs and trucks, resulting in a significant rise in its stock price [1][5] - The company now expects adjusted earnings before interest and taxes to be between $12 billion and $13 billion in 2025, an increase from the previous forecast of $10 billion to $12.5 billion [2][3] - Despite the improved outlook, the new projection is still below the initial guidance of up to $15.7 billion, reflecting challenges from tariffs and a decline in the electric vehicle segment [3][6] Sales Performance - GM is experiencing a surge in sales of high-margin gas-powered SUVs and trucks, aided by relaxed federal emissions regulations [3] - The company's stock rose 15%, marking its best one-day gain since March 2020, closing at a record $66.62 [5] Tariff Impact - CEO Mary Barra expressed gratitude to President Trump for extending tariff discounts on certain imports, which is expected to support American jobs and innovation [4] - The forecast indicates GM's efforts to navigate disruptions caused by the White House regarding emissions penalties, electric vehicle subsidies, and import levies [6] Future Outlook - Analysts suggest that GM's earnings in the upcoming year may surpass those projected for 2025, indicating positive momentum for the company [5] - GM has acknowledged a one-time charge of $1.6 billion to restructure its electric vehicle business, highlighting ongoing challenges in this area [6]