Live: General Motors Shares Now Down 8%
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Shares are in Free Fall
Yikes. The reaction to General Motors’ earnings have taken a turn for the worse.
After opening at more than $51 per share, shares are now trading down 7.5%, at $49.27 as of 11 a.m. ET.
Our take is that the company’s outsized (and continuing) tariff impacts are the biggest factor in this outsized drop. We posted the key slide about tariffs earlier, but it looks like they’ll remain a larger overhang than investors were expecting heading into earnings.
Tariff Impacts
General Motors provides a letter to shareholders that is typically brief, but does provide some interesting details.
In it Marry Barra said:
“For example, in June we announced $4 billion of new investment in our U.S. assembly plants to add 300,000 units of capacity for high margin light-duty pickups, full-size SUVs and crossovers. This will help us satisfy unmet customer demand, greatly reduce our tariff exposure, and capture upside opportunities as we launch new models. The capacity begins coming online in just 18 months, after which we project building more than 2 million vehicles in the U.S. each year as we scale.”
Tariffs continue to be in focus. In the second quarter GM said they were a $1.1 billion net impact. I’ve attached the slide on tariffsf rom their earnings presentation below.
Conference Call Details
General Motors will host its earnings call on Tuesday, July 22 at 8:30 am ET. To join, dial 1-800-857-9821 and enter the passcode “General Motors.”
GM Shares Moderating
Initially, after the earnings release, General Motors (NYSE: GM) shares were down more than 3%. However, we’re now seeing a moderation with the shares down about 2.4% as of 7:58 a.m. ET.
General Motors (NYSE: GM | GM Price Prediction) reported Q2 earnings this morning, and Wall Street isn’t too pleased with what they’re seeing.
The automaker is down 3% in premarket trading. Let’s take a look at the earnings, the impacts of tariffs, and more as we’ll keep this live article updated with news and analysis throughout the morning.
The Big Figures
Whenever you’re looking at earnings, the two key figures to watch are revenue and EPS and how they compare to Wall Street estimates. In that regard, General Motors exceeded expectations.
EPS of $2.53 beat Wall Street estimates of $2.34 while revenue of $47.12 billion beat estimates of $45.85 billion.
Not all figures beat, with vehicle sales of 974,000 units below estimates that were just a shade below a million.
So, why are shares down? The company maintains a full-year EPS of $8.25 to $10, but Wall Street estimates had moved up to an estimate of $9.37. That’s above the midpoint GM just reported, so full-year earnings are now below Wall Street expectations.
More Earnings Details
General Motors reported its Q2 2025 financial results with a revenue of $47.1 billion, slightly beating Wall Street estimates. The net income attributable to stockholders was $1.9 billion, reflecting a decrease from the previous year’s $2.9 billion. The company maintained its full-year financial guidance.
Adjusted earnings per share (EPS) were $2.53, compared to the estimated $2.34, indicating a slight outperformance. EBIT-adjusted earnings were $3.0 billion, down from $4.4 billion in Q2 2024. GM’s automotive operating cash flow was $4.7 billion, a significant drop from $7.7 billion the previous year. The company continues to focus on its transition to electric vehicles, leveraging its brands like Buick, Cadillac, Chevrolet, and GMC.
Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
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