GM’s stock is soaring as these factors drive a better profit forecast

General Motors Co. defended its recent decision to scale back electric-vehicle production, saying on Tuesday that the move will help it improve its financials next year.

The automobile maker just boosted profit expectations for this year while saying it expects even better financial performance in 2026 as it continues “rightsizing” the business. Last week, GM

GM announced it would take a $1.6 billion charge related to a reassessment of EV production, noting that additional charges would be possible. But CEO Mary Barra maintained on Tuesday that EVs remain the company’s “north star” and that by acting “decisively” to address overcapacity, GM expects to reduce losses “in 2026 and beyond.”