GM's EPS Beats, But Trade Wars Cast a Shadow: What Investors Need to Know

Investors, let’s cut to the chase: General Motors just delivered a $0.12 beat on its Q1 Non-GAAP EPS, but the real story here isn’t the numbers—it’s what’s not in the numbers. The company postponed its earnings call until May 1, citing “significant uncertainty” around U.S. tariffs on automotive imports. This isn’t just a delay; it’s a red flag. Buckle up—we’re diving into the details, the risks, and whether this stock is worth your attention.

The Beat: A Close Call, Not a Home Run
GM reported a Q1 Non-GAAP EPS of $2.78, squeaking past estimates by a whisker. Revenue rose to $4.16 billion, up 9% year-over-year, driven by surging finance charge and leased vehicle income. But here’s the catch: costs exploded. Interest expenses jumped 14%, and loan loss provisions nearly doubled. This isn’t just inflation—it’s a sign GM is borrowing more and facing tighter credit conditions.

The Elephant in the Room: Tariffs and Guidance Withdrawal
GM pulled its full-year 2025 profit guidance—a move that sent shockwaves through the market. Why? U.S. tariffs on imported vehicles could cost GM millions if trade tensions with China escalate. Remember, 25% of GM’s sales now come from China, where Q1 truck/SUV/EV sales exploded by 17%. But if tariffs block those exports, that growth could evaporate.

China’s Growth Machine: A Double-Edged Sword
GM’s retail loan originations fell from $10.6 billion to $9.6 billion in Q1, but China’s EV boom is masking domestic headwinds. The company’s leased vehicle portfolio grew to $32.2 billion, and commercial finance receivables dropped—a sign businesses are holding back. Meanwhile, delinquency metrics stayed steady, but net charge-offs crept up to 1.2%. This isn’t a crisis, but it’s a yellow flag in credit quality.

Liquidity? Check. Clarity? Not Yet.
GM’s $37.8 billion in liquidity looks rock-solid, but here’s the rub: investors crave transparency. The postponed earnings call isn’t just about tariffs—it’s about GM’s strategy. Can they pivot their EV lineup fast enough? Will U.S. trade policies strangle their Chinese growth? Analysts are already scrambling to revise estimates downward, per WSJ reports.

The Bottom Line: Hold Fire Until May 1
GM’s Q1 results show a company balancing two worlds: strong overseas growth and domestic uncertainty. The EPS beat is a win, but the lack of guidance is a loss. Investors should wait until May 1 for clarity on tariffs and trade. If GM can navigate those storms, this stock could roar. But until then? Stay on the sidelines—this is a “wait and see” call.

Final Verdict:
GM’s fundamentals are mixed, but the tariff overhang is a game-changer. With $2.78 in the bank but a $37.8B war chest, this isn’t a sell—but it’s not a buy either. Watch the May 1 call closely. If management outlines a tariff-proof strategy? Then, and only then, might this be a stock worth betting on.

Disclosure: The analysis above is for informational purposes only and not financial advice. Always consult a professional before making investment decisions.