General Motors’ latest quarter saw a negative market reaction, reflecting investor concerns over a drop in year-on-year sales and reduced operating margins. Management attributed the quarter’s results to the impact of new tariffs and higher warranty costs, as well as shifts in production strategy and competitive fleet pricing. CEO Mary Barra noted, “We have demonstrated consistent execution of our production and go-to-market strategies,” but acknowledged ongoing challenges, particularly around supplier quality and software-related warranty claims.

Is now the time to buy GM? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions General Motors’s Q2 Earnings Call

• Mike Ward (Research): Asked about the $600 million adjustment on EV inventory and mitigation of tariff impacts. CFO Paul Jacobson clarified this was a timing issue and expects improvement as inventory stabilizes.
• Dan Levy (Barclays): Questioned the sustainability of retail pricing and EV profitability at lower price points. CEO Mary Barra emphasized portfolio breadth and ongoing battery cost reductions to support future profitability.
• Ryan Brinkman (JPMorgan): Probed the long-term effectiveness of U.S. manufacturing investments in reducing tariff exposure. Jacobson said flexibility and increased domestic production should bring tariff costs down over time, but the full impact depends on future trade deals.
• Tom Narayan (RBC Capital Markets): Inquired about the economics of Korean operations under current tariffs and global market strategy. Barra said Korean plants remain efficient and contribution-positive but long-term decisions await greater policy clarity.
• Emmanuel Rosner (Wolfe Research): Asked about the pace and scale of share buybacks and potential for lower capital intensity. Jacobson reiterated a balanced capital approach, with no plans for significant CapEx reductions despite evolving EV market conditions.

Catalysts in Upcoming Quarters

In the upcoming quarters, the StockStory team will closely watch (1) progress on tariff mitigation and the pace of domestic manufacturing expansion, (2) improvements in warranty and software-related quality issues, and (3) execution on EV profitability initiatives, including battery cost reductions and Super Cruise monetization. Developments in trade policy and consumer demand for both ICE and EV vehicles will remain important markers of strategic progress.

General Motors currently trades at $53.61, in line with $53.26 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

The Best Stocks for High-Quality Investors

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.