Trump threats for tax key materials needed to build vehicles in both Canada and Mexico, which are an integral part of US chains to supply automatic investors.
The General Motors’ earnings have exceeded Wall Street forecasts, but investors are still throwing supplies widely at the fear of tariffs that will make the car manufacturer hit the goal of their goals 2025.
The shares have fallen more than 10 percent on Tuesday, putting it on a trip for their worst day from the early days of the Coid-19 pandemics in March 2020. Investors and analysts said that GM’s prospect of blurred by the threats of the United States, Donald Trump of Tariff and reduced electric support support.
On Monday night, Trump again threatened tariffs in a wide range of goods, including steel, aluminum and copper, all materials critical for the construction of a car. He also threatened with difficult calls of allies Mexico and Canadawhich are key to the American car chain of supply.
The car manufacturer predicted a net revenue of $ 11.2 billion at $ 12.5 billion for 2025. This is ahead of expectations for $ 10.8 billion, and numerous analysts called it optimistic.
“There is only a lot of uncertainty between tariffs, as well as the rules and regulations around EV’s tax incentives. With this uncertainty, this is not really extinguished at GM guidelines at the moment,” said Jeff Wandau, a financial analyst from Edward Jones.
GM Executive Director Mary Barra told investors on Tuesday at a conference call to believe that Trump “wants to use politics and regulations in ways that will strengthen not to harm local manufacturers like GM”. Trump said he wanted to use a company to push the company to move surgery back to the US – but such moves can take years.
In the meantime, GM has a “extensive game of playing” collected in events, the tariffs are imposed, CFO told GM Paul Jacobson to reporters on Monday before Trump’s statements. The company has already started bringing vehicles to its international inventory in Mexico and Canada in the US, Jacobson said.
“Any delivery we can give before establishing a tariff, it’s much better instead of sitting in stock,” he said.
However, he said, however, that he would not be able to make some decisions until they understood what the tariff environment would look like. “There are things we can do to balance the plants, etc., and then there are things that cost a lot more money forward,” he said.
EV losses
GM’s fourth quarter of $ 47.7 billion surpassed the expectations of analysts in the amount of $ 43.9 billion. Adapted earnings per share of $ 1.92 also exceeded analyst’s forecasts of $ 1.89 per share.
He had previously announced that he had sold 2.7 million vehicles for a year, which is 4 percent compared to 2023.
GM sold vehicles at an average price of $ 50,000 in 2024, and the managers see a drop of 1 to 1.5 percent of the power price of North America and a modest drop in gas volume at 2025.
The company expects the losses to narrow their batteries, reorganization of its Chinese business and the end of the development of Robotaxi on Cruise, its units of an autonomous vehicle.
Detroit car manufacturer does not overthrow EV losses, but in 2024 he said that the revenue was higher than fixed costs, including the operation and material costs, a metric that calls positive variable profitability. The picture does not include costs such as the construction lines, but it indicates financial progress in the introduction of EV.
GM did not fulfill its goal of production and wholesale 200,000 EV in North America in the year, but ended up at a wholesale of 189,000 units, Jacobson said. EV inventory fell 100 days at the end of the third quarter for 70 days.
GM has previously had EV’s prognosis that will reduce between $ 2 billion and $ 4 billion from undiscovered levels this year, although Jacobson said the loss drops are likely to be closer to $ 2 billion.
GM reported in a quarter about profit before taxing of $ 2.5 billion, but reported on a net loss of $ 3 billion, mostly because of $ 4 billion for restructuring fees in China, where he lost $ 4.4 billion in the year. China has returned profitability before restructuring costs in the fourth quarter, Jacobson said.
