General Motors' (NYSE: GM) shares soared Wednesday after the car maker released third-quarter earnings that beat analysts' expectations on strong truck sales.
Earnings per share came in at $1.87, adjusted, vs. $1.25 expected, on revenue of $35.79 billion vs. $34.85 billion expected
The car maker's shares jumped by $2.08, or 6.2% in early Wednesday trading, to $35.62
All of the automakers have been reporting higher material costs and other increased expenses stemming from the trade war, particularly between the United States and China, punctuated by signs of weak demand for new cars overall, particularly in North America.
A recent estimate from industry tracker LMC Automotive said North American new vehicle sales are expected to fall in October over the same month last year and face further pressure ahead.
Though GM stock rose firmly this week in response to reports that China may finally be lowering its automobile import tariffs, General Motors stock is still down 24% from its June peak, with the market pricing in the presumed headwind of the United States’ own newly-imposed tariffs on imported steel.
That added cost may not necessarily be the end of the world, however, if last quarter’s results from Ford Motor (NYSE:F) are any indication.
Though GM’s rival still has some cyclical headwinds to contend with, there’s still a buck to be made in the business.
Though General Motors has been traditionally the second-biggest seller of electric vehicles in the United States, it has been a distant second to Tesla (NASDAQ: TSLA). With electric cars becoming the inevitable future, though, GM appears to be more interested in shaping that future rather than being shaped by it.
