General Motors Q3 Net Income Falls 57% Amid Tariffs EV Production Changes

General Motors experienced a sharp 57% decline in net income for the third quarter of 2025, primarily driven by tariffs costing $1.1 billion, reduced production amid cooling demand, and significant adjustments to its electric vehicle (EV) plans. The company reported lower revenues and profit margins, with adjusted earnings per share and EBIT both down compared to the previous year, reflecting challenges in EV production and market demand. Despite these setbacks, GM raised its full-year guidance, projecting adjusted EBIT between $12 billion and $13 billion and adjusted EPS up to $10.50, signaling confidence in its strategic initiatives. CEO Mary Barra highlighted efforts to reduce tariff exposure, enhance EV profitability, and grow software services, which have generated nearly $2 billion in revenue to date with strong subscriber growth. GM is also increasing domestic production, focusing on full-sized gas-powered trucks and SUVs, especially as ICE vehicle volumes remain robust amid changing regulatory landscapes. The company acknowledged that the EV market is growing slower than anticipated, partly due to policy reversals like the elimination of the $7,500 tax credit, leading to a $1.6 billion penalty from EV-related impairments and contract cancellations.