What risks could impact GM's future earnings?

General Motors (GM) faces several risks that could impact its future earnings: 1. **Market Challenges and Tariffs**: GM's earnings could be affected by increased tariffs on imported cars, which could lead to reduced profit margins and disrupted operations. Additionally, the company's reliance on a financing arm, GM Financial, could be impacted by potential auto loan delinquencies. 2. **Electric Vehicle Adoption**: The slower-than-expected consumer adoption of electric vehicles presents a significant risk to GM's long-term strategy. Factors such as limited EV portfolio options, perceptions of EV performance and cost compared to traditional vehicles, and inadequate charging infrastructure continue to impact adoption rates. 3. **Debt Levels**: GM's use of debt brings risk, as it can lead to permanent loss of capital if the company is unable to fulfill its legal obligations to repay debt. The company's net debt was approximately $104.9 billion as of June 2024, which could be a concern for investors. 4. **Strategic Adjustments**: Failure to meet adoption goals for electric vehicles could necessitate strategic adjustments, potentially harming GM’s financial performance and compliance with global emissions regulations. 5. **Interest Rate Risks**: As interest rates rise, there is a risk that consumers may defer purchases, which could negatively impact vehicle sales and, consequently, GM's earnings. In summary, GM's future earnings are subject to various risks, including market challenges, tariffs, slow EV adoption, high debt levels, and interest rate risks. These factors could lead to a negative impact on the company's financial performance.