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General Motors has pledged that electric vehicles will remain “a long-term future” as battery-powered cars have more than doubled quarterly sales, despite declining profits from US tariff costs.
GM reported an adjusted profit of $300 million before interest and taxes for the second quarter. It fell 32% year-on-year, but revenue fell 1.8% to $47 billion. Adjusted operating income was slightly higher than average analyst estimates, according to S&P Capital IQ.
US automakers had previously warned of tariff exposures of up to $5 billion, but President Donald Trump has denounced the decline in costs associated with a 25% tariff on imports of foreign-made cars and other taxable taxes.
In the April-June quarter, the company booked a $1.1 billion tariff expenses, which are expected to decrease as measures are needed to mitigate the impact.
One bright spot was the strong growth of battery-powered vehicles thanks to its strong product lineup. Sales rose 111% to 46,280 units despite a wider slowdown in EV growth as Trump terminated its policy favorable for selling electric vehicles.
GM’s share of the US EV market reached 16% as the company continues to invest in establishing a cost-competitive battery supply chain raised in North America.
“Even though the EV industry is slow to grow, we believe that the long-term future is profitable electric vehicle production and that this will continue to be our North Star,” Chief Executive Mary Bala said in a letter to shareholders.
The automaker said it would maintain guidance on annual adjusted operating profits of between $10 billion and $12.5 billion.
