General Motors Posts Strong Q4 Earnings Despite Stock Decline

GM's earnings beat expectations, but concerns over EV margins, tariffs, and lack of a new buyback plan weigh on investor sentiment.

General Motors reported Q4 adjusted earnings per share of $1.92, surpassing analyst expectations of $1.86, with revenue increasing 11% to $47.7 billion.
Despite strong financial results, GM's stock dropped 9% on Tuesday and an additional 1% on Wednesday due to market concerns over future challenges.
Analysts cited factors such as weaker margins in North America, potential EV price declines, and the absence of a new stock buyback announcement as key investor concerns.
GM has projected 2025 profits in the range of $13.7 billion to $15.7 billion, with EPS guidance of $11.00 to $12.00, but has not factored in potential impacts from tariffs or policy changes.
The company continues to face uncertainty regarding federal EV tax credits and new tariffs under the Trump administration, which could affect its manufacturing operations in Mexico and Canada.