GM is up as tariff twists and EV shifts complicate the landscape

General Motors just dropped some earnings news that's got Wall Street buzzing. On October 21, 2025, the Detroit-based giant reported solid third-quarter results, and its shares rocketed up by 15%—the biggest single-day leap in nearly seven years.

Even with tariff pressures and a reassessment of its EV ambitions, GM’s swift action has investors confident in its ability to stay ahead.

GM has been pouring billions into EVs to chase federal rules that pushed for greener cars. But after the $7,500 tax credit expired on September 30, buyers pulled back on EV purchases following a surge from July through September. Sales for those models still made up under 10% of GM's total, but the shift forced the company to take a $1.6 billion hit in the third quarter.

CEO Mary Barra admitted adoption will slow in the short term. To cut losses, GM plans to trim EV production capacity and tweak its lineup, aiming to turn things around by 2026. Then the tariff hurdle emerges. President Trump's import taxes on parts from Mexico and Canada—key spots for GM's factories—slapped the company with $1.1 billion in costs last quarter.

But here's the smart play: GM slashed its full-year tariff bill forecast to $3.5 billion to $4.5 billion, thanks to speedy adjustments like boosting U.S. plants in Michigan, Kansas, and Tennessee with a fresh $4 billion investment. Overall revenue dipped slightly to $48.6 billion, but U.S. sales climbed 6%, hitting 710,347 vehicles—an 8% jump from last year.

Consumers are opting for higher-end trucks and added features, offsetting the impact. It’s a rollercoaster for an old-school automaker like GM. If these adjustments pay off, it could bring steadier earnings and more jobs across America. For now, that stock surge has GM eyeing 2025 highs—proof that adaptability pays off in this fast-changing auto world.

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