GM shares surge on outlook, upbeat message on tariffs and EVs

• Its multibillion-dollar tariff bill? GM's reducing it quicker than expected.
• A slowing EV market? It's moving quickly to shrink that business down, and focusing on profitability with what remains.
• And with the Trump administration easing emission regulations, GM can now hardly keep pace with demand for its most profitable gas-burning trucks and SUVs.

Zoom in: GM says it now expects $500 million less of a hit from tariffs this year than it previously forecast, to a new range of ​​$3.5 billion to $4.5 billion.

• The company said it plans to make up about 35% of that amount by cutting go-to-market costs and streamlining its manufacturing operations.

On the EV side, GM already booked a $1.6 billion charge connected to moves to trim down capacity, including transitioning an EV plant to an assembly of gas-powered models.

• "By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond, making us much better positioned as demand stabilizes," CEO Mary Barra said on the company's earnings call.

Zoom out: The company raised its full-year outlook. It now expects adjusted earnings before interest and taxes to be $12 billion to $13 billion in 2025, up from a previous range of $10 billion to $12.5 billion.

• And while revenue and net income both fell in the third quarter, GM is now predicting profit growth in 2026.

Market impact: GM shares closed up 15%, and are now up 25% on the year.