After Tesla Inc (NASDAQ:TSLA) issued its third quarter earnings report that was considered a disaster by many and the UAW expanded the strike against Stellantis (NYSE:STLA) yesterday, General Motors (NYSE:GM) topped Wall Street estimates with its third quarter but still lowered its full year outlook due to mounting costs of the UAW strike, along with its EV market.

For the third quarter, GM reported revenue of $44.13 billion, topping LSEG’s estimate of $43.68 billion as it grew 5.4%. Net income dropped 7.3% YoY to $3.06 billion while EBIT declined 16.9% YoY. Adjusted earnings per share of $2.28 topped LSEG’s estimate of $1.88. In North America, adjusted earnings tanked 9.5% YoY to $3.53 billion as during the quarter, the UAW strike costed GM about $200 million with total costs of the walkouts being $800 million in pre-tax earnings due to lost vehicle production. 

GM’s North America goals were to sell 400,000 EVs from 2022 through mid-2024 along with making 100,000 EVs during the second half of this year. The automaker retained its targets of achieving low-digit profit margins on EVs as well as North American annual production capacity for the vehicles of 1 million by 2025. But last week, GM announced it will be delaying production of electric trucks at a second plant in Michigan by at least a year as it is now scheduled for late 2025 for GM to save about $1.5 billion in capital. Next year, GM CEO Mary Barra announced the release of a new range of SUVs that are more profitable than existing models. 

By exceeding Wall Street estimates, GM could give support UAW’s main argument that automakers can afford more concessions, potentially prolonging the negotiations and work stoppages. Now, more than 40,000 UAW members employed at GM, Ford Motor (NYSE:F) and Stellantis are on strike, representing about 27% of Detroit Three automakers’ workforce. The newest addition to the strike was the Michigan plant which is the largest assembly plant Stellantis has, hitting its profitable RAM 1500 pickup truck production. Even the EV king, Tesla, isn’t having such as good time. But Tesla reiterated that the eagerly anticipated cybertruck deliveries will start on November 30th. Despite missing forectasts and a slowdown in earnings with thinning margins, Tesla is still more profitable than traditional automakers as it excels in the EV know-how which is not something GM, Stellantis and Ford can brag about.