GM Crushes Q3 Earnings, Raises 2025 Forecast Despite EV Headwinds – Stock Soars 15%

• How Did GM Shock Wall Street in Q3?
• What’s Behind GM’s Rosy 2025 Guidance?
• Why Are EV Profits Still GM’s Achilles’ Heel?
• How Did China Save GM’s Quarter?
• What’s Next for GM Investors?
• GM Earnings: Your Questions Answered

General Motors just delivered a blockbuster Q3 earnings report, smashing Wall Street estimates and sending its stock skyrocketing by 15% – its best single-day performance since 2020. The Detroit automaker raised its full-year guidance for 2025, showing surprising resilience despite slowing EV adoption and tariff pressures. While North American margins slipped, GM’s China rebound and strong financial services division helped offset the drag. Here’s the full breakdown of GM’s earnings fireworks.

How Did GM Shock Wall Street in Q3?

GM left analysts scrambling to update their models after reporting $2.80 in adjusted EPS (versus $2.31 expected) and $48.59 billion in revenue (beating the $45.27 billion forecast). The company’s adjusted EBIT of $3.38 billion blew past the $2.72 billion consensus. "This wasn’t just a beat – it was a demolition of expectations," noted the BTCC market analysis team. TradingView data shows the stock surged from Monday’s $58 close to over $66 by midday Tuesday.

What’s Behind GM’s Rosy 2025 Guidance?

CEO Mary Barra raised full-year adjusted EBIT guidance to $12-13 billion (up from $10-12.5 billion) and EPS to $9.75-10.50 (previously $8.25-10). The automaker also boosted its auto free cash Flow projection to $10-11 billion. "Our team’s execution and product portfolio are delivering results," Barra told investors. The company additionally trimmed its 2025 tariff impact estimate by $500 million, crediting recent policy changes.

Why Are EV Profits Still GM’s Achilles’ Heel?

CFO Paul Jacobson dropped a bombshell: only 40% of GM’s EVs are currently profitable at production level. "We need structural cost improvements," he admitted on CNBC. The company took a $1.6 billion charge from scaling back its EV ambitions, contributing to a 57% net income drop. However, GM’s EV market share nearly doubled to 13.8% – still miles behind Tesla but now ahead of Hyundai/Kia.

How Did China Save GM’s Quarter?

While North American margins fell to 6.2% (from 9.7%), GM’s Chinese operations delivered a $217 million year-over-year improvement. The international segment added another $184 million, and GM Financial’s earnings jumped 17% to $804 million. "It’s like watching a basketball team where the bench saves the game," quipped one market watcher.

What’s Next for GM Investors?

Barra identified restoring North American margins to 8-10% as her top priority. With Q4 EPS guidance ($1.64-$2.39) above analyst estimates, GM appears confident despite EV challenges. The stock’s explosive reaction suggests investors believe the guidance – for now. As always in the auto sector, execution will be everything.

GM Earnings: Your Questions Answered

How much did GM stock rise after earnings?

The stock surged over 15% on the earnings news, marking its best day since 2020.

What was GM’s revenue versus expectations?

GM reported $48.59 billion in revenue, comfortably beating the $45.27 billion Wall Street forecast.

Are GM’s electric vehicles profitable?

Only about 40% currently are at production level, per CFO Paul Jacobson’s comments.