General Motors raised its yearly profit outlook to $12.0-$13.0 billion and decreased expected tariff impact to $3.5-$4.5 billion. Despite a drop in quarterly adjusted earnings per share to $2.80, GM’s stock rose 10%. GM plans to mitigate 35% of tariff costs, with relief expected for U.S. automakers due to expanded credits for U.S. auto production.

GM CEO Mary Barra focused on EV investments to meet federal requirements, despite current regulations unraveling. Barra expects future EV-related charges but believes EVs remain crucial. GM aims to reduce EV losses in 2026 and beyond by addressing overcapacity. U.S. car sales rose 6% in Q3 despite tariff uncertainty.

Companies facing over $35 billion in U.S. tariff costs anticipate trade deals with Mexico, Canada, and South Korea. Global automakers are investing in U.S. facilities to offset tariffs, with GM investing $4 billion in Michigan, Kansas, and Tennessee. Stellantis plans a $13 billion U.S. investment. Barra scaled back GM’s 2035 EV-only goal, emphasizing customer demand guiding lineup decisions.

GM and other automakers are offering incentives to boost EV sales, with GM initially planning a tax credit program before backtracking. Ford and other automakers are also offering incentives. Sales of EVs surged in Q3, but still make up less than 10% of GM’s overall sales. Trade deals with Mexico, Canada, and South Korea are awaited for tariff relief.

Read more at Yahoo Finance: General Motors lifts forecast as tariff outlook improves, shares surge 10%