The GM stock tariff slips on fear as revenue is more than expectations. Trade war news

For the manufacture of vehicles and the threats of Trump for the major materials required for Canada and Mexico, which is an integral part of the American auto supply chains, has snatched investors.

The earnings of General Motors have overcome the forecasts of Wall Street, but investors are still widely dumping stocks from fear of tariffs that will make the car manufacturer hard to hit their 2025 goals.

The shares fell by more than 10 percent on Tuesday in March 2020 since the early days of the Kovid -19 epidemic. Support for electric vehicles.

Trump again threatened tariffs at a wide array of accessories including steel, aluminum and copper on Monday evening, all the materials important to make automobiles. They have also threatened heavy levies on the Allies Mexico and Canada, which are important for the American motor vehicle supply chain.

The automaker estimated the net income of $ 11.2bn to $ 12.5BN for 2025. It is ahead of the expectations of $ 10.8bn, and many analysts called that view optimistic.

“Along with tariffs, there is a lot of uncertainty between the rules and regulations around EVS and tax incentives. With that uncertainty, it is not really ripe under the guidance of GM at this point, ”said Edward Jones’s financial analyst Jeff Windau.

GM CEO Mary Barra told investors on a conference call on Tuesday that he believes that Trump “would like to use policy and rules in ways that would not harm domestic manufacturers like GM”. Trump has said that he wants to use tariffs to pursue companies to carry forward operations in the US – but such steps may take years.

Meanwhile, GM has a “broad playbook”, which has been installed event tariffs, GM’s CFO Paul Jacobson told reporters on Monday before Trump’s statements. Jacobson said that the company had already started bringing vehicles to America in its international inventory in Mexico and Canada.

He said, “Every delivery that we can do before the tariff is as much better instead of sitting on the inventory,” he said.

However, he said that they would not be able to take some decisions until they understand what the tariff environment would look like. He said, “There are things that we can do to balance plants, etc., and then there are things that cost a lot of money.”

EV loss

The fourth quarter revenue of $ 47.7BN’s fourth quarter has crossed the $ 43.9BN analyst expectations. The adjusted income per share to $ 1.92 was also higher than analyzer forecasts of $ 1.89 per share.

It had earlier said that it sold 2.7 million vehicles for the year, from 2023 to 4 percent.

GM sold vehicles at an average price of $ 50,000 in 2024, and authorities saw a slight decline in North American pricing power by 1 percent to 1.5 percent and in 2025 gas-powered vehicles.

The company hopes that the disadvantage will be narrowed with its battery -powered vehicles, the restructuring of its China business, and the end of robotaxi development in the cruise, its autonomous vehicle unit.

The Detroit car manufacturer does not break its EV deficit, but in 2024 it was stated that the revenue was higher than the fixed cost, including the cost of labor and material, a metric called positive variable profitability. The figure does not include costs such as construction of assembly lines, but indicates financial progress in EV rollouts.

Jacobson said GM did not meet its target of 200,000 EV construction and wholesale targets in North America in the year, instead ended 189,000 units in bulk. EV inventory fell from 100 days to 70 days at the end of the third quarter.

The GM had earlier narrowed the earlier forecasted EV operating deficit with undisclosed levels between $ 2BN and $ 4bn this year, although Jacobson said Jacobson said the loss was likely to be close to $ 2BN.

GM reported a pre-2.5BN profitable profit in the quarter, but reported $ 3BN net loss, mostly due to $ 4bn in reorganization fee in China where it was lost $ 4.4BN a year. Jacobson said that Chinese business returned to profitability before restructuring the allegations in the fourth quarter.