DETROIT – General Motors Co. reported Tuesday that it raised its profit guidance through the rest of the year, citing reduced pressure from tariffs and a realignment of its electric-vehicle program as factors.

GM said its adjusted earnings forecast would fall between $12 billion and $13 billion in 2025, compared with its previous outlook of between $10 billion and $12.5 billion.

The automaker reported that the impact of global tariffs would be less than expected. GM said that tariffs could result in a hit between $3.5 billion and $4.5 billion, a revision from earlier figures that anticipated an impact of between $4 billion and $5 billion.

Also, GM said that it would continue to realign its EV program as demand is expected to soften in that market.

In a letter to shareholders, GM Chairman and CEO Mary Barra said that the company had expanded its EV capacity to meet a more stringent regulatory environment related to fuel efficiency under the Biden administration.

Now, many of those regulations have been removed, reducing the need to accelerate EV production.

“With the evolving regulatory framework and the end of federal consumer incentives, it is now clear that near-term EV adoption will be lower than planned,” Barra said in her letter.  “That is why we are assessing our EV capacity and manufacturing footprint.”

Last week, GM said it would take a $1.6 billion charge during the third quarter, related to the anticipated drop in EV sales.   Barra said that the work is ongoing and future charges related to EV losses are expected.

“By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond,” Barra said.

On Sept. 30, federal tax incentives of up to $7,500 that would apply to qualifying EVs expired.

Barra added that electric vehicles remain the company’s “North Star,” and vowed to continue investment in the technology. “We will continue to invest in new battery chemistries, form factors, and architectural improvements to drive profitability.”

GM also announced that it would cancel production of its EV BrightDrop van, citing weak demand.

The Detroit automaker reported net income during the third quarter of $1.327 billion, down 56.6% compared to the same period in 2024. Revenue for the quarter ended Sept. 30 stood at 48.6 billion, down from 48.7 billion during the same period in 2024.