GM beat revenue and profit expectations and announced a $20 billion buyback; execution is strong in large trucks and hybrids and it is weathering tariffs well. But it is not out of the woods: EV writedowns are a big problem, international results are weak, and 2027 guidance is only cautiously optimistic.

General Motors announced its quarterly results this morning. Initially, the reaction was positive . It exceeded expectations in revenue and profits, and announced a massive $ 20 billion share buyback , but the stock subsequently declined.

It remains under pressure in pre- opening trading.

Well, I think there's a really strong execution, and General Motors has clearly exceeded expectations, but I don't think they're out of the woods yet. There is a clear trade-off that takes place between the profit margin versus the mix and sales volume.

General Motors does really well in the areas where it excels. Its performance is low internationally. It is low at General Motors Finance, and I think it is weathering the tariff storm well compared to others because of local localization.

So, they are managing the process really well, but writing off electric vehicle assets is still a big problem.

But as I pointed out, I think what we see in the data on TrueCar is that affordability is still the core. So, while their sales and supply volumes are low, they are making money where they always have, which is in large trucks .

They are certainly seeing a trade-off in exchange for this volume of sales.

So, I think investors are probably thinking about what will happen in 2027 and beyond. I know they made strong predictions for 2027, but they were cautiously optimistic.

This is another area where General Motors currently excels: the hybrid car sector.

I think incentives are another story for General Motors. They managed them very well, but that's only because they focused on full- size trucks, which don't need a lot of incentives to sell.

Well, I think General Motors is better equipped to handle some of these things than others. This is mostly due to the location of their factories, and because they focus primarily on the American market.

Meanwhile, I saw General Motors in decline internationally. But commodity prices will certainly benefit General Motors as long as they continue to focus on the US market.