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GM slashes profit outlook, sees tariffs costing up to $5 billion - MarketWatch

1. GM lowered its earnings forecast due to $5 billion tariff costs. 2. Adjusted EPS now expected between $8.25 to $10, down from $11 to $12. 3. Capital spending plans for battery investments remain unchanged at $10 to $11 billion. 4. Tariffs on imported auto parts will take effect May 2, impacting costs. 5. GM shares have dropped 15.1% in 2025; premarket trading shows slight recovery.

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FAQ

Why Bearish?

The significant reduction in earnings guidance due to tariffs suggests a negative outlook. Historical instances show such announcements typically impact stock prices adversely.

How important is it?

The article discusses GM’s revised earnings outlook significantly influenced by tariffs, a crucial concern for investors.

Why Short Term?

The immediate effects of the tariff implementation on earnings are expected soon. Past similar news events typically show rapid share price reactions.

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