General Motors (GM) Jumps 19% on Minimal Dent from Tariffs

We recently published 10 of Wall Street’s Outperformers. General Motors Company (NYSE:GM) is one of the top-performing stocks last week.

General Motors surged by 19.32 percent week-on-week as investors cheered the minimal impact of import tariffs on its earnings, alongside improved growth outlook for the rest of the year.

In an updated report, General Motors Company (NYSE:GM) said total net sales and revenues during the period ended flat at $48 billion versus the same quarter last year, suggesting that businesses have started adapting to President Donald Trump’s tariffs.

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Additionally, the company raised its guidance for earnings before interest and taxes for the fourth quarter of the year to $12 billion to $13 billion, from the $10 billion to $12.5 billion previously.

Net income attributable to shareholders, however, narrowed to $7.7 billion to $8.3 billion from $7.7 billion to $9.5 billion earlier.

Last quarter, attributable net profit fell by 56.6 percent to $1.327 billion from $3.056 billion in the same period last year.

Looking ahead, General Motors Company (NYSE:GM) said it is heavily investing in the development of facilities in the US as it looks to support domestic manufacturing while minimizing tariff risks.

Over the next two years, General Motors Company (NYSE:GM) is set to spend $4 billion for the development of production plants in Tennessee, Kansas, and Michigan.

“Once these investments come online, we plan to produce more than two million vehicles per year in the United States. We are also investing close to $1 billion to build a new generation of advanced, fuel-efficient V8 engines in New York. Importantly, we are maintaining our capital discipline while adding this production and creating new jobs,” said Chairman and CEO Mary Barra.

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Disclosure: None. This article is originally published at Insider Monkey.