GM Stock Soars Over 11% After Q3 Earnings Beat and Guidance Raise

General Motors (GM) reported better-than-expected third-quarter earnings for 2025, with adjusted earnings per share of $2.80 beating estimates and revenue of $48.6 billion surpassing forecasts despite being flat year-over-year. The company raised its full-year adjusted EBIT guidance to $12–$13 billion and increased its profit outlook, citing improved trade conditions and tariff impacts lower than previously anticipated. GM took a $1.6 billion charge related to a strategic realignment of its electric vehicle (EV) production, reflecting a scale-back in EV rollout amid slower-than-expected adoption and a reassessment of capacity to better match consumer demand. CEO Mary Barra emphasized that while EVs remain a priority, internal combustion engine vehicles will continue to generate significant profits in the near term, with software and connected services also expected to boost margins. Despite a 57% drop in net income due to restructuring charges, GM's stock surged in premarket trading, reflecting investor confidence in the company's trajectory and ability to navigate tariffs and an evolving EV market. The company highlighted strong demand ahead of EV tax credit expirations and expects robust growth in services like OnStar and Super Cruise through the end of the decade.