(Reuters) – General Motors raised its annual financial forecast on Tuesday and slightly lowered the expected impact of tariffs, as the automaker now operates in a more stable business environment while facing a dynamic electric vehicle market and new supply chain challenges.
The Detroit group now forecasts an adjusted Ebit of between 12.0 and 13.0 billion dollars (10.29 and 11.15 billion euros), compared to a previous estimate of 10.0 to 12.5 billion.
GM said the tariffs will have a smaller than expected impact on its bottom line, bringing it to an updated range of $3.5 billion to $4.5 billion, down from $4 billion to $5 billion previously.
The stock rose 6% in pre-market trading.
GM’s adjusted earnings per share for the quarter fell to $2.80, beating analysts’ expectations of $2.31 according to LSEG data.
Earlier this month, the auto giant recorded a $1.6 billion charge related to the shift in its EV plans. At the end of September, a $7,500 tax credit for battery models was removed, while vehicle emissions regulations were further relaxed.
In a letter to shareholders, GM Chief Executive Mary Barra said she expected the company to bear EV-related costs in the future.
“By acting quickly and decisively to address overcapacity, we expect to reduce EV-related losses in 2026 and beyond,” she said.
Revenue for the quarter ended in September fell slightly from a year ago to $48.6 billion.
(Nathan Gomes and Nora Eckert, Elena Smirnova, edited by Augustin Turpin)
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