General Motors (GM) had a strong quarter for electric vehicle sales despite experiencing a profit drop due to rising tariff costs. The company reiterated its commitment to making EVs central to its long-term priority.
General Motors (GM) reaffirmed its commitment to electric vehicles after record-breaking sales in this quarter despite the increased tariffs. However, the U.S. carmaker reported a $3B drop in operating profits in Q2.
“Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star,” GM’s CEO, Mary Barra, said in a letter to shareholders, emphasizing the importance of EVs in the firm’s growth strategy after it recorded more than double its EV sales from the same period in 2024.
General Motors still outperformed analyst expectations despite a 1.8% decline in total revenues. This performance partly shows GM’s continued investment in establishing a more cost-effective, domestically sourced battery supply chain in North America.
Tariff pressures prominent in General Motors’ report
General Motors is still steady on its full year outlook even after conceding that it faces up to $5B in potential exposure from the Trump administration’s tariffs. The company doubled down on its 2025 guidance for adjusted operating profit between $10B and $12.5B.
While the EV sector has generally experienced slow growth, GM’s strong model lineup and production scale have allowed it to maintain momentum. The company’s focus on vertically integrated battery production and cost-effective sourcing in North America is positioning it for long-term profits.
Stakeholders will continue to watch the company closely as it transitions into an “electric first” future, buoyed by optimism over its ability to corner the wider EV market even after taking on $1.1B in tariff costs.
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