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General Motors Prepares for High-Stakes Q2 Earnings Report

General Motors is set to announce its second-quarter earnings before markets open on Tuesday, and Wall Street is paying close attention—not just to the numbers, but to what they signal about GM’s ability to navigate ongoing tariff pressures, shifting EV policy, and softer consumer demand.

According to consensus estimates from LSEG (London Stock Exchange Group), analysts expect GM to post:

• Adjusted earnings per share (EPS): $2.44
• Total revenue: $46.4 billion

If those estimates hold, it would represent a 3.3% drop in revenue and a 20.3% decline in EPS compared to the same quarter last year, when GM reported $47.97 billion in revenue and $4.44 billion in adjusted EBIT.

Tariffs Create a $5 Billion Challenge

One of the biggest headwinds facing GM remains the Trump administration’s 25% tariffs on imported vehicles and automotive parts—a policy that continues to create cost pressures across the industry.

In May, GM revised its full-year outlook, lowering its adjusted earnings expectations to reflect a potential $4 billion to $5 billion impact from tariffs. The company also acknowledged that while it aims to offset at least 30% of those cost increases, the financial burden is real and growing.

GM has responded with a renewed commitment to domestic production. In June, it pledged $4 billion in investments across U.S. plants, including moving production of two vehicle models from Mexico to Michigan and increasing SUV and truck output domestically.

These moves, GM says, are part of a strategy to "strengthen American manufacturing and reduce exposure to international trade risks."

Updated 2025 Guidance Reflects Tariff Fallout

GM’s revised 2025 financial guidance includes:

• Adjusted EBIT: $10 billion to $12.5 billion (down from $13.7B–$15.7B)
• Net income attributable to shareholders: $8.2 billion to $10.1 billion (previously $11.2B–$12.5B)
• Adjusted automotive free cash flow: $7.5 billion to $10 billion (down from $11B–$13B)

These lowered projections highlight the financial strain tariffs are placing on the business—even as the company maintains solid operational performance in its core segments.

EV Tax Credits on the Chopping Block

Investors will also be listening closely for updates on GM’s electric vehicle (EV) roadmap, especially in light of President Trump’s recently signed tax-and-spending bill. The new law will eliminate the $7,500 tax credit for new EVs and the $4,000 credit for used EVs after September 30, 2025.

This legislative shift has created uncertainty across the auto industry. A recent Barclays research note warned of a likely slowdown in EV launches, while Deutsche Bank expects a temporary acceleration of EV purchases in Q3, as buyers rush to benefit from the expiring credits.

GM had initially committed to selling only electric vehicles by 2035, but executives have recently backtracked, stating that consumer demand will ultimately drive the pace of their EV rollout.

With EV adoption still lagging expectations—especially in rural markets and among lower-income consumers—GM is signaling a more flexible, market-driven approach.

Market Sentiment and Stock Outlook

Despite the headwinds, analysts remain cautiously optimistic. GM stock is currently rated "overweight", with a $56 price target according to FactSet consensus estimates. The stock has been resilient, reflecting investor belief in GM’s long-term execution strategy and capacity to manage short-term shocks.

Tuesday’s earnings call at 8:30 a.m. ET is expected to provide further insight into how the company is navigating these complex dynamics—balancing trade policy, EV innovation, and financial stability in an uncertain economic climate.

Final Thoughts

GM’s second-quarter earnings release is more than a routine financial update—it's a reflection of how one of America’s biggest automakers is adapting to a rapidly changing policy environment and evolving consumer landscape. Whether GM can continue to drive growth while absorbing multi-billion-dollar tariff hits and rethinking its EV strategy remains to be seen.

Investors, analysts, and policymakers alike will be watching closely.

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