General Motors raised its profit outlook for the year due to reduced tariff costs and losses on electric cars. CEO Mary Barra mentioned that near-term EV adoption will be lower than planned, expecting future charges related to EVs. The auto giant took a $1.6 billion charge from changes to its EV strategy.

GM’s quarterly adjusted earnings per share beat expectations at $2.80, with revenue slightly falling to $48.6 billion. The company’s results could face challenges from supply chain disruptions, additional EV charges, and increased warranty costs. GM plans to mitigate 35% of its anticipated tariff hit and anticipates relief from expanded credits for U.S. auto production.

Investors are still waiting on trade deals with Mexico, Canada, and South Korea. GM scaled back its EV ambitions, citing lower than expected EV adoption and canceling production of its BrightDrop van. Sales of EVs made up less than 10% of the company’s overall sales in the third quarter. Stellantis announced plans to invest $13 billion in the U.S. over the next four years.

Read more at Yahoo Finance: General Motors lifts forecast as tariff outlook improves, shares surge 14%