Why did General Motors get an increase in profits

General Motors (General MotorsThe hot stocks spread after the last profit report on Tuesday.

The shares of the giant of the car fell 11 % on Tuesday It closed 9 %. This was the worst day of the stock since March 2020. The arrow threw another 1 % until midday on Wednesday.

The stock gained 50 % in 2024 like General Motors Remove quickly to cut billions in costs and purchase shares. The results also win the analysts’ estimates.

“The stocks were wounded (Tuesday) for various reasons, but the lack of a new re -purchase declaration of shares waving on the horizon,” said Boufa Auto analyst that “The stocks were wounded (Tuesday) for various reasons, but the absence of a new re -purchase declaration of shares waving on the horizon.” John Murphy In a note for customers on Wednesday.

GM re -processed more than $ 7 billion in shares in 2024 and more than $ 11 billion in 2023. Re -distinction played a major role in strengthening General Motors’s profits by reducing existing stocks, thus supporting the highest share price.

Meanwhile, Murphy believes that the harsh market reaction was delayed, he listed a set of reasons that make GM shares could stay in the penalty box in the near term.

“We heard a number of factors that seem to disturb the market: 1) Understanding in politics without any change in expectations – definitions, IRA incentives (the law to reduce inflation), EPA/carb acc II; 2) The negative mixture on the fourth quarter and anxiety will become This is strongly with more EVS in 2025)

Definitions in particular hang on and evaluating the auto sector stocks.

UBS researchers estimate that the auto industry is responsible for 26 % of imports from Mexico to the United States and 12 % of Canada.

General Motors produce very profitable pickup trucks in Mexico and depends on the country to make EVS such as Chevy Blazer and Cadillac Optiqu. It has five large collection plants in the two countries.

Ford competitor (and12 % of its products are made in Canada and Mexico.

“We have made a lot of planning for the scenario and know the cranes that we can withdraw to reduce any effect. But with an opportunity to speak to the president, I really think he wants a strong manufacturing sector because it is good for the economy,” a chair and CEO of General Motors Mary Barra Yahoo’s finances on Tuesday (video above).

General Motors said it assumed a “stable” political environment, which, for Murphy, may have disturbed investors who are witnessing anything but stable from the new Trump administration.

Moreover, GM’s instructions for the year 2025 from $ 11 to $ 12 were before consensus expectations of $ 10.75 but do not assume any effect on additional tariffs.

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