Trump’s threat to the construction of vehicles and Trump’s threat to taxing Canada and Mexico surprise investors who are essential for US automatic supply chains.
General Motors’ revenue is beyond the forecast of Wall Street, but investors have dumped shares widely with fear of tariffs that make it difficult for camakers to achieve their goals in 2025.
Stocks have decreased by more than 10 % on Tuesdays, and are on steady on the worst from the early days of COVID-19 Pandemic in March 2020. Investors and analysts have stated that GM’s prospects are cloudy due to the threat of President Donald Trump’s tariffs. Support for electric vehicles.
Trump again threatened the tariffs of a wide range of products, including iron, aluminum, and copper, which contain all important materials for building cars on Monday evening. He is also threatening the heavy collection of allies, Mexico and Canada, the key to US car supply chains.
Automaker predicted net income from $ 11.2 billion to $ 12.5 billion in 2025. This is ahead of $ 10.8 billion, and many analysts are called Outlook optimistic.
“There are a lot of uncertainty between the rules and regulations on customs duties, EVs, and tax incentives, and said, Jeff Window, a financial analyst of Edward Jones.
GM CEO’s Mary Rose told investors at a telephone conference on Tuesday that Trump would like to use policies and regulations in a way to enhance domestic manufacturers like GM. 。 Trump states that you want to use tariffs to push companies and return your business to the United States, but such movements can take years.
Until then, GM gathered a “wide playbook” when the tariff was imposed, and GM’s CFO Paul Jacobson told the reporters on Monday before Trump’s statement. Jacobson said that the company had already brought vehicles into the United States in international stock in Mexico and Canada.
“Every delivery we can do before the tariff is enacted is much better than sitting in stock,” he said.
But he said he would not be able to make some decisions until he understood what the tariff environment looked. “There are things that can be done to balance plants, and there are a lot of money in the future,” he said.
EV loss
GM’s fourth quarter revenue of $ 47.7 billion exceeded the expectations of $ 43.9 billion analysts. The 1.92 adjustments of $ 1.92 per share exceeded the $ 1.89 analyst forecast.
Previously, 2.7 million vehicles were sold annually, and vehicles increased by 4 % from 2023.
GM sold vehicles at a average price of $ 50,000 in 2024, and executives were reducing the amount of gas -driven vehicles in 2025, 1 % down 1.5 % from 1 % to North America, 1.5 %.
The company anticipates the reorganization of vehicles equipped with batteries, the Chinese business, and the end of Robotaxi development on cruises, a autonomous vehicle unit, will reduce the loss.
Detroit’s car manufacturer did not break down the loss of EVs, but in 2024 it stated that it was higher than fixed costs including revenue and material costs. This figure does not include costs such as the construction of the assembly line, but indicates the economic progress of EV rollout.
GM has not achieved the goal of producing 200,000 EVs in North America annually and doing wholesale, but will end with 189,000 units wholesale. EV stock decreased from 100 days to 70 days at the end of the third quarter.
GM had previously predicted that the business loss of EV would be narrowed between $ 2 billion and $ 4 billion this year from the unpublished level, but Jacobson stated that the loss has declined to $ 2 billion.
GM reportedly reported a $ 2.5 billion tax -prone profit in the quarter, but mainly lost $ 4.4 billion in China in China, which reported a $ 3 billion of $ 3 billion. According to Jacobson, the Chinese business returned to profitability before being rebuilt in the fourth quarter.