General Motors Bounces Back After Q2 Earnings Slump, Maintains Neutral Stance

General Motors (GM) reported Q2 earnings with revenues down 1.8% and net income down 35% compared to the same period last year. Despite this, normalized earnings per share exceeded expectations, and revenue surpassed consensus. The company's EV sales surged 111% YoY, with 46,300 units sold, and Chevrolet becoming the #2 EV brand globally. GM plans to achieve EV profitability by early 2026 and is making strategic investments in electric vehicles.

General Motors (GM) reported its Q2 earnings with revenues down 1.8% and net income down 35% compared to the same period last year. Despite these declines, the company's earnings per share exceeded expectations, and revenue surpassed consensus estimates. The company's electric vehicle (EV) sales surged 111% year-over-year (YoY), with 46,300 units sold, and Chevrolet becoming the #2 EV brand globally. GM plans to achieve EV profitability by early 2026 and is making strategic investments in electric vehicles.

GM's net income fell 35% to $3.04 billion, primarily due to higher costs and uncertainty surrounding the Trump administration's automotive tariffs, which resulted in a $1.1 billion hit to its bottom line. The company's CFO, Paul Jacobson, noted that GM is tracking to offset at least 30% of the $4 billion to $5 billion full-year 2025 tariff impact through strategic actions such as manufacturing adjustments, targeted cost initiatives, and consistent pricing [1].

Despite the tariff-related challenges, GM's total revenue reached $47.12 billion, down about 2% year-over-year but exceeding Wall Street's estimate of $46.25 billion. Adjusted EBIT was $3.04 billion (down $1.4 billion year-over-year), topping analyst expectations of $2.84 billion. Earnings per share were $2.53, ahead of the consensus estimate of $2.34. Notably, U.S. sales rose 7%, and the company continued to command strong pricing on pickup trucks and SUVs [1].

GM's EV sales growth in Q2 2025 was driven by a combined 46,280 EVs sold, up 111% from the same period last year. Chevrolet became the second-best-selling electric vehicle brand in the U.S., with strong growth across the Equinox EV, Blazer EV, and Silverado EV. Cadillac, which now offers a full lineup of electric SUVs, claims to be the luxury EV leader in the U.S. [3].

Looking ahead, GM plans to build a "next-gen affordable EV" in Kansas and is expanding its partnership with LG Energy Solution to build lower-cost LFP EV batteries at its joint venture (Ultium Cells) plant in Tennessee. The company expects to introduce the new Chevy Bolt EV later this year, featuring a longer driving range, faster charging, and additional features [3].

GM's ability to navigate tariff pressures and continue its EV growth trajectory will be closely watched by investors. The company's strategic investments in electric vehicles and its focus on agility and responsiveness to market demands position it well for the future [1, 3].

References:
[1] https://finance.yahoo.com/news/general-motors-cfo-agility-key-111552482.html
[2] https://www.autofinancenews.net/allposts/leasing/tesla-lease-penetration-falls-under-2-as-sales-decline/
[3] https://electrek.co/2025/07/22/gm-took-1b-hit-q2-but-profitable-evs-will-be-north-star/