General Motors (NYSE: GM) has taken the stock market by surprise in early trading, with shares surging more than 13% following the release of its third-quarter results. Investors clearly liked what they saw, a strong quarter that topped earnings estimates combined with an upbeat revision to the full-year earnings outlook and rewarded the Detroit automaker with its biggest single-day jump in years.
The company reported revenues of $48.6 billion for the quarter, comfortably above analyst projections. Net income also held steady at $1.3 billion, with adjusted earnings per share coming in at $2.80, well ahead of the expected $2.31. These numbers were driven by solid sales of gasoline-powered pickups and SUVs, models that remain the backbone of GM’s profitability, alongside steady gains in international markets and its financial services operations.
One of the big positives easing market nerves was GM’s improved outlook on tariffs. The company lowered its expected tariff costs for the year to between $3.5 billion and $4.5 billion, down from an earlier forecast of $4 billion to $5 billion. Tariffs have been a major overhang on the industry, but GM has managed to soften the blow thanks to trade policy updates and its own supply chain management. This helped management lift its adjusted core profit forecast to a range between $12 billion and $13 billion, notably higher than previous guidance.
EVs remain a work in progress for GM. They posted a record 66,501 EV sales in the quarter, but the recent expiration of a federal $7,500 EV tax credit means the company expects near-term electric vehicle growth will slow. GM took a $1.6 billion charge tied to revising its EV plans, a reminder of the challenges ahead as it balances innovation with current profitability. Despite this, the broader business held strong thanks to its traditional vehicle lineup and improved tariff outlook.
The strong earnings report and updated guidance had an immediate effect on share price, sending investors rushing in early to buy. Shares opened around $63.76 and climber to $66.13, hitting a five-year high. This rally propelled GM’s market cap past $63 billion and gave the stock its best day in over half a decade. Market watchers see this as a vote of confidence that GM’s smarter management of tariffs, combined with resilient vehicle sales and a recalibrated EV strategy, could translate to sustained growth.
Looking forward, analysts are now projecting full-year adjusted earnings per share between $9.75 and $10.50 with free cash flow rising to as much as $11 billion, both above prior expectations. While hurdles remain, like tariff exposure and EV uncertainties, GM’s ability to adapt quickly appears to be winning investor trust on this crisp October morning.
This market reaction shows how much stock price can hinge not just on raw earnings but on the quality of the outlook and the company’s approach to real-world challenges. GM’s results were not just about financials, but about confidence in how it navigates a shifting market landscape and policy environment. The surge in early trading confirms that’s exactly what investors are buying today.
