GM Stock Jumps After Blowout Q3 Earnings, Upgraded Forecast
General Motors (GM) delivered a standout third-quarter performance, exceeding Wall Street expectations and raising its full-year guidance—sending shares soaring 8% in pre-market trading. The Detroit automaker’s strong results highlight its resilience despite supply chain hurdles and a rapidly evolving auto industry focused on electric vehicles (EVs) and autonomous technology.
GM Crushes Q3 Earnings Estimates
GM posted $44.1 billion in revenue (up 5.4% YoY), beating estimates of $43.1 billion. Adjusted earnings per share (EPS) of $2.28 smashed forecasts of $1.84, driven by:
– Higher vehicle pricing and sales volumes
– Improved cost efficiency
– Strong demand for trucks and SUVs
Raised 2023 Guidance Boosts Investor Confidence
GM now projects:
– Net income: $9.1B–$9.7B (up from $8.4B–$9.9B)
– Adjusted EBIT: $11.7B–$12.7B (narrowed from $11B–$13B)
– EPS: $7.20–$7.70 (vs. prior $6.50–$7.50)
CEO Mary Barra credited disciplined execution and EV momentum, stating: “Our business is accelerating as we scale our EV portfolio.”
EV Expansion & Cruise Autonomy Gains
- EV Production: GM aims for 1 million annual EV capacity by 2025, with new models like the Chevy Silverado EV and Blazer EV launching soon.
- Cruise Milestone: GM’s self-driving unit won approval for 24/7 driverless rides in San Francisco, signaling progress toward commercialization.
Challenges Ahead
- Labor Costs: The UAW strike added $800M in Q3 expenses.
- EV Profitability: Margins remain negative but should improve with scale.
- Competition: Tesla’s price cuts and BYD’s global push intensify pressure.
Analysts React
- Morgan Stanley: Called the guidance raise “a clear positive.”
- Wells Fargo: Praised GM’s “execution in a tough macro climate.”
Bottom Line
With strong earnings, raised targets, and a clear EV roadmap, GM is proving its ability to compete in the tech-driven auto era. Investors see a company not just adapting—but accelerating.
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