General Motors lifted its financial outlook for the year and slightly lowered its expected hit from tariffs, as the automaker settles into a more stable trade landscape while confronting a dynamic electric vehicle market and new supply-chain snarls.

Shares of GM surged 11% after earnings result.

The company now expects its annual adjusted core profit to be between $12.0 billion to $13.0 billion, compared with its prior estimate of $10.0 billion to $12.5 billion. The Detroit automaker said tariffs would hit its bottom line less than anticipated, lowering its updated impact to a range of $3.5 billion to $4.5 billion, from a previous $4 billion to $5 billion.

The auto giant earlier this month took a $1.6 billion charge from changes to its EV strategy. At the end of September, a $7,500 tax credit on battery-powered models went away, and there has been further loosening of regulations around vehicle emissions.

In a letter to shareholders, GM CEO Mary Barra said she expects the company to incur future charges related to EVs.

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

Revenue for the quarter ended September marginally fell to $48.6 billion from a year earlier.