General Motors (GM) reported better-than-expected earnings for the first quarter, but the automaker's decision to delay its earnings call and reassess full-year guidance sent shares lower on Tuesday.
GM posted adjusted earnings of $2.78 per share on revenue of $44.02 billion, topping Wall Street forecasts of $2.70 EPS and $42.85 billion in revenue. Despite the beat, the stock fell more than 2% as investors reacted to the company’s decision to withhold its full-year forecast.
While GM maintained its previously issued FY25 guidance range of $11 to $12 in adjusted EPS, executives acknowledged that the numbers do not account for the potential impact of auto tariffs. The company said it will revisit those projections once the trade landscape becomes clearer.
The automaker also announced that its Q1 earnings call, originally scheduled for Tuesday, would be postponed until Thursday. That decision raised eyebrows on Wall Street, as it came amid escalating speculation that the White House is preparing to roll back key tariffs affecting the auto sector.
Tariff Relief in Focus as Trump Visits Michigan
The delay in GM's earnings call coincides with former President Donald Trump's visit to Michigan, where he is expected to announce an executive order that will modify existing auto tariffs. According to the White House, the order will reduce or eliminate overlapping duties on vehicles and parts, changes that are intended to bolster U.S. auto manufacturing by alleviating some of the cost pressures faced by domestic automakers.
Trump’s visit to Selfridge Air National Guard Base and his rally at Macomb Community College mark his first 100 days back in office. Michigan, a key swing state with deep ties to the auto industry, has felt the weight of tariffs acutely, with the state’s unemployment rate jumping 1.3% in March alone to 5.5%—one of the highest in the country.
Industry groups have warned that steep import tariffs on vehicles and parts could lead to higher consumer prices and job losses. Analysts believe some of the recent surge in auto sales may reflect “panic buying” as consumers rush to lock in prices ahead of further tariff-related disruptions.
Market Jitters Reflect Uncertainty, Not Performance
Despite GM’s solid Q1 numbers—revenues up 2.3% year-over-year and adjusted EBIT of $3.49 billion—the smallest year-over-year revenue growth since Q4 2023 and a nearly 10% drop in EBIT compared to last year signal underlying concerns. The EBIT margin shrank to 7.9% from 9.0% a year ago, reinforcing investor anxiety over cost pressures and a murky outlook.
The auto giant emphasized that its January guidance assumed a “stable policy environment,” which is clearly no longer the case. The decision to delay commentary on the quarter until Thursday suggests GM is taking a wait-and-see approach to what could be a substantial policy pivot.
For investors, the main concern is not the strength of GM’s operations but the unpredictability of U.S. trade policy. With U.S.–China tariff tensions still in flux and a potential slowdown in economic growth tied to import volatility, markets are bracing for further clarity from GM’s rescheduled call.
Until then, uncertainty—not earnings—continues to drive the narrative.
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