Shares rally as General Motors beats forecasts, lifts guidance
By Abigail Townsend
Date: Tuesday 21 Oct 2025
(Sharecast News) - Shares in General Motors powered ahead on Tuesday, after the US car giant comfortably beat Wall Street forecasts and boosted its full-year outlook.
Third-quarter revenues at the owner of Chevrolet, Buick, Cadillac and GMC were ahead of consensus for $45.27bn, easing just 0.3% at $48.59bn in the three months to September end.
Diluted adjusted earnings per share also beat expectations for $2.31, at $2.80. Adjusted earnings before interest and tax fell 18% at $3.38bn. However, Wall Street had pencilled in far greater fall, to $2.72bn.
As a result, the Detroit-based group increased its full-year outlook, with EPS now predicted to come in between $8.30 and $9.05. Previously guidance had been for $8.22 to $9.97.
As at 1400 BST, the stock had surged 10%.
The global auto sector has been rocked by Donald Trump's tariff regime, which saw swingeing levies imposed on imports of both cars and parts.
The tax on parts meant even manufacturers that build cars in the US were impacted.
However, in her letter to shareholders, GM chief executive Mary Barra said the company was "performing well in a dynamic environment", including hitting its highest third-quarter market share in the US since 2017.
She also thanked Trump, after he approved an executive order last week to expand credits for US car and engine production, helping to offset tariffs on imported parts.
Barra said the offset programme would help make US-produced vehicles "more competitive" over the next five years.
GM has also looked to shore up its US manufacturing facilities, in light of Trump's global trade war, including a $4bn capital investment programme announced in the summer.
"Once these investments come online, we plan to produce more than 2m vehicles per year in the US," said Barra. "We're also investing close to $1bn to build a new generation of advanced, fuel-efficient V8 engines in New York."
GM currently imports around half of the vehicles it sells in the US, primarily from Mexico and South Korea.
Earlier this month GM said it would take a $1.6bn hit as it reassess its electric vehicle offering. The market has come under intense pressure recently, as consumer demand softens and governments withdraw support.
Trump is also a vocal supporter of fossil fuels.
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