GM Rides High on Profit Forecast Amid EV Strategy Recalibration

General Motors (GM) raised its profit outlook for 2023, citing reduced tariff pressures and better-than-expected electric vehicle (EV) performance. CEO Mary Barra announced shifts in EV strategy due to changing regulations, while GM's stock saw its largest gain in nearly six years. However, future challenges remain with supply chain disruptions.

General Motors (GM) has revised its profit forecast for the year upward, driven by eased tariff pressures and improved performance of its electric vehicle (EV) division. This reassessment sent GM's stock soaring by 15% on Tuesday, marking its largest single-day increase in almost six years.

CEO Mary Barra addressed shareholders in a letter, emphasizing the automaker's sustained commitment to EV investments despite regulatory changes under President Donald Trump's administration. Though future charges related to EVs are anticipated, Barra reassured stakeholders that EVs are GM's 'North Star,' acknowledging that short-term EV adoption may be slower than initially planned.

In the backdrop of these changes, GM reported a $1.6 billion charge linked to its revised EV strategy. Yet, it anticipates annual adjusted core profits to lie between $12.0 to $13.0 billion, surpassing previous expectations. While tariffs remain a concern, GM plans to mitigate a significant portion of potential impacts, bolstered by support measures for U.S. auto and engine production.

(With inputs from agencies.)