General Motors reported on Tuesday its third-quarter financial results, beating Wall Street consensus. Shares jumped by nearly 10% to over $63 immediately after the results were published.
The Detroit automaker posted a total revenue of $48.59 billion, rising quarter over quarter and slightly decreasing from a year ago.
The figures, which were above estimates of $45.27 billion, were largely driven by a surge in demand in the last quarter ahead of the EV tax deadline.
The company delivered 66,501 electric vehicles between July and September, doubling from a year ago.
Overall deliveries stood at 710,347 units, a growth of nearly 8% year-on-year.
GM reported adjusted earnings per share of $2.80 (above estimates of $2.31) and adjusted Earnings Before Taxes and Interest (EBIT) of $3.38 billion.
The company’s operating income was 24.2% above the Wall Street expectations of $2.72 billion.
However, the net income, which represents the profit left after all expenses are deducted from the revenue, had its margin slashed in half compared to a year ago — from 6.3% to 2.7%.
Last week, GM warned that its third quarter financial results had been impacted by a $1.6 billion loss from its EV strategy change.
The charges were approved by GM‘s board audit committee last week, and were based on the realignment of the company’s electric vehicle production to match consumer demand.
The company estimates a $1.2 billion non-cash impairment, as manufacturing operations were trimmed.
The remaining $400 million represents actual cash costs, mainly from fees and settlements in cancelled contracts with suppliers.
These figures impacted the net income attributable to stockholders, which also halved from a year ago — from $3 billion to $1.3 billion.
In a new shareholder letter published on Tuesday, CEO Mary Barra said that the company is increasing their full-year guidance, “underscoring our confidence in the company’s trajectory.”
GM expects adjusted EBIT of between $12-13 billion (up from $10-12.5) and $9.75-10.50 adjusted EPS (up from $8.25-10).
The company further expects lower gross tariff impact — at $3.5-4.5 billion, which is below the previous $4-5 billion estimates.
The figures are based on tariff rates continuing at their current levels, with material and suppliers indirect tariff costs contributing to the estimates.
According to GM, tariff mitigation actions are expected to offset about 35% of the impact.
In the new letter, Barra thanked President Donald Trump and his team “for the important tariff updates they made on Friday.”
The chief executive was referring to the orders signed late last week, which expand credits for domestic auto and engine production, while expanding the 25% auto tariff to imported medium and heavy-duty trucks and parts from November 1.
“The MSRP offset program will help make US-produced vehicles more competitive over the next five years,” Barra stated.
The CEO added that “GM is very well positioned as we invest to increase our already significant domestic sourcing and manufacturing footprint.”
As of press time, the stock is trading 10.2% higher at $63.90, after closing at $58.00 on Monday.
GM‘s stock has jumped 18.6% over the past three months.
