GM postpones investor call amid reports of possible tariff relief as panic buying powers an earnings beat
The Detroit automaker reported earnings before the market opened on Tuesday.
Shares of General Motors fell 2% in premarket trading on Tuesday, as the company reported its first-quarter earnings but rescheduled its conference call until Thursday amid “recent reports regarding updates to trade policy.”
The Detroit automaker reported earnings per share of $2.78, topping analysts’ estimates of $2.68. It also delivered a beat on sales, logging $44 billion in revenue on the quarter compared to Wall Street estimates of $43.23 billion.
Looming tariffs drove thousands of customers to GM lots to beat anticipated price hikes — the company had previously reported a 17% surge in US sales on the quarter.
Investors will have to wait until Thursday for the automaker’s guidance for the second quarter, which will reflect how the company performs under the 25% auto tariffs that went into effect April 3 or the additional 25% auto parts tariffs set to go into effect this week on May 3. Automakers have desperately lobbied President Trump for additional time and exemptions to the levies, though the sector-based tariffs so far appear here to stay.
A late Monday Wall Street Journal report that further expanded on Trump’s expected tariff relief for automakers likely drove GM to postpone its call. It’s expected that the president will exempt automakers from additional tariffs, like those on steel and aluminum, and may reimburse some manufacturers for portions of the auto parts tariffs. The White House is expected to make the changes during or ahead of Trump’s rally in Michigan on Tuesday night.
About half of GM’s vehicles sold in the US last year were built outside of the country, leaving it more vulnerable to tariffs than some of its rivals (particularly Ford).
