GM Raises 2025 Earnings Outlook Amid Trump Tariff Relief

General Motors (GM) has raised its 2025 earnings guidance after delivering stronger-than-expected third-quarter results, driven by solid demand for trucks and SUVs, as well as gains in international markets and GM Financial. The company now expects adjusted earnings per share between $9.75 and $10.50 for the year, up from prior forecasts, and predicts 2026 earnings to surpass 2025 due to improvements in electric vehicle losses, warranty costs, tariffs, and fixed costs. GM also anticipates a smaller impact from U.S. tariffs, reducing its expected tariff-related costs to between $3.5 billion and $4.5 billion, aided by tariff relief measures announced by President Donald Trump, including extended tariff discounts through 2030. Despite challenges in the electric vehicle segment, GM remains committed to electrification while focusing on restoring regional profitability and expanding its domestic manufacturing footprint. The automaker plans to continue aggressive share repurchases and price increases on vehicles to offset tariff costs. This positive outlook has led to a significant rise in GM's stock price following the earnings announcement.