GM Stock Soars 15% in Best Day Since 2020 on Strong Earnings

General Motors stunned Wall Street with a massive 15% stock surge after third-quarter results blew past expectations. The Detroit automaker is cutting EV losses fast, shrinking its tariff bill, and leaning hard into the gas-powered trucks and SUVs that Americans simply cannot stop buying. Here is why investors are betting big on GM’s bold pivot.

GM Beats Wall Street Estimates and Raises Full-Year Outlook

15 General Motors raised its 2025 financial guidance after beating Wall Street’s top and bottom line earnings expectations for the third quarter, while lowering its expected impact from tariffs. 14 GM’s per-share profits of $2.80 and revenue of nearly $49 billion both topped Wall Street expectations. 14 Analysts expected revenue of about $44 billion and earnings of $2.26 per share between July and October.

The revised outlook tells a bigger story. 18The Detroit automaker now expects adjusted earnings before interest and taxes between $12 billion and $13 billion, up from a prior range of $10 billion to $12.5 billion, and adjusted earnings per share of $9.75 to $10.50, compared with an earlier forecast of $8.25 to $10.00.

15 GM stock rose more than 15% in trading Tuesday. The stock, which closed Monday at $58 per share, had its best day since 2020 and its second best day on the market since its 2009 emergence from bankruptcy.

General Motors stock surge 15 percent earnings tariff EV pullback

“Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory.” – CEO Mary Barra

How GM Is Slashing Its Multibillion-Dollar Tariff Bill

Tariffs were supposed to crush Detroit. They did not.

3 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. 3 The company said it plans to make up about 35% of that amount by cutting go-to-market costs and streamlining its manufacturing operations. 15 Barra on Tuesday thanked President Donald Trump for tariff updates that included imposing levies on imported medium and heavy duty trucks and parts as well as extending a tariff offset worth 3.75% of the value of American-made vehicles.

Here is a quick look at how GM’s tariff picture has shifted throughout 2025:

22 The MSRP offset program will help make U.S.-produced vehicles more competitive over the next five years. Earlier this year, GM announced $4 billion in capital investments to onshore production at plants in Tennessee, Kansas, and Michigan over the next two years. 25 Barra said that once those investments are in place, the company plans to make more than 2 million vehicles per year in the U.S. The automaker is also investing nearly $1 billion to build a new generation of advanced, fuel-efficient V8 engines in New York.

GM’s EV Retreat Frees Up Billions for Profitable Trucks

The electric vehicle dream is not dead at GM. But it is on a much tighter leash now.

28 With the evolving regulatory framework and the end of federal consumer incentives, it is now clear that near-term EV adoption will be lower than planned. That is why GM is reassessing its EV capacity and manufacturing footprint, which resulted in a special charge in the third quarter, and the company expects future charges. By acting swiftly and decisively to address overcapacity, GM expects to reduce EV losses in 2026 and beyond.

The numbers behind the pullback are staggering. 32GM has accumulated $7.6 billion in cumulative losses from its electric vehicle initiatives. 32The automaker has also terminated the BrightDrop electric delivery van program, converted a Lansing manufacturing facility to produce gas-powered Cadillac CT5 sedans rather than EVs, and abandoned EV component production plans at a Toledo transmission facility.

38 By early 2026, those delays became permanent cancellations. General Motors notably pivoted its Orion assembly plant back to a mix of gas and electric trucks, while also announcing a fresh $888 million investment in new V8 engine production.

Yet Barra has not shut the door entirely. 19GM has sold its stake in an Ultium battery plant, shifted the Orion Assembly plant back to internal combustion production, and will introduce hybrids in key segments while continuing to expand its EV lineup.

Trucks and SUVs Are Driving GM’s Profit Machine

While EV demand cools, the trucks and SUVs that built GM’s empire are hotter than ever.

18 Strong U.S. demand for gas-powered models continued to drive results. Sales of the Chevrolet Silverado and GMC Yukon helped propel GM’s total U.S. deliveries to 710,347 vehicles in Q3, up 8% year over year, marking its best market share since 2017. 18 Incentives remained disciplined at 4% of average transaction price, compared with an industry average of 6.9%. That pricing power is rare in the auto business and signals genuine consumer demand rather than forced discounting.

GM is also running lean. 6GM is operating with 30% to 40% less inventory, discounting roughly 200 basis points less than the industry, and has generated an estimated $3 billion to $4 billion in improved cash performance from tighter pricing and inventory discipline.

9 The company achieved its highest U.S. market share since 2015, driven by strong sales in full-size pickups and SUVs, coupled with low inventory and incentives.

What Comes Next for GM Shareholders

The momentum did not stop after Q3. 9General Motors reported adjusted earnings per share of $2.51 for the fourth quarter of 2025, significantly surpassing analysts’ consensus estimates which ranged from $2.20 to $2.27. This strong beat on the bottom line, despite a slight revenue miss, signaled robust operational performance. Furthermore, the company provided an optimistic outlook for fiscal year 2026, projecting adjusted EPS between $11 and $13, with the midpoint exceeding analyst expectations.

11 GM repurchased $6 billion in stock in 2025, cutting its diluted share count by more than 465 million shares, or nearly 35%, since late 2023. The board approved a fresh $6 billion buyback authorization and boosted the quarterly dividend by 20% to 18 cents per share.

Wall Street is paying attention. 2Wolfe Research analyst Emmanuel Rosner raised his rating on General Motors to Outperform from Peer Perform and set a $96 price target. 4UBS recently increased its 12-month price target on GM stock by 14% to $97 per share, while naming the company its top autos pick heading into 2026.

Key risks remain, though. 10Barra said GM is hopeful the U.S. and South Korea can finalize a new trade deal that includes a 15% tariff on vehicles exported to the U.S. from South Korea. President Donald Trump said the U.S. would increase the tariff back to 25% after the South Korean legislature failed to approve the pact.

32 Tariff-related expenses for Q1 2026 are anticipated to range between $750 million and $1 billion.

GM’s 15% stock surge was not just about one good quarter. It was a signal that a 116-year-old company can still surprise people by doing what it does best: building the trucks and SUVs that Americans love, while keeping costs tight and cash flowing. The road ahead is still bumpy, with tariffs shifting, EV losses lingering, and thousands of workers feeling the pain of plant shutdowns. But for now, Mary Barra and her team have shown Wall Street that this Detroit giant still knows how to fight. What do you think about GM’s big bet on gas-powered vehicles while pulling back on EVs? Drop your thoughts in the comments below.