GM, Ford, and Stellantis report rising costs as truck sales boom

General Motors, Ford, and Stellantis released third-quarter earnings on Wednesday, reporting revenue increases despite a sharp rise in production costs.

The automakers attribute the revenue growth to strong demand for large trucks and high-end vehicles. General Motors said light-duty truck sales rose 9% year-over-year. Stellantis reported a 34% increase in U.S. pickup sales. Ford cited its F-Series as a continuing bestseller. Overall revenue rose 2.9% for GM, 2% for Ford, and 1% for Stellantis. The average new vehicle transaction price reached just over $50,000 in September, near a record high, according to Kelley Blue Book.

Cost pressures have built since 2025. The administration imposed tariffs on imported steel, aluminum, and copper. Copper prices have also climbed due to global demand for electric vehicle batteries and data center wiring. Computer memory chip prices have risen due to tight supply chains and demand from the artificial intelligence sector. Diesel fuel, used to ship vehicles from factories to dealerships, averaged $6.35 per gallon, near its September peak.

These inputs are directly impacting the bottom line. GM CFO Paul Jacobson stated that material and diesel costs could run the company up to $2 billion this year. The company is also paying roughly $2.5 billion in tariff costs, a figure lower than earlier forecasts due to refunds. Ford CEO Jim Farley projected a similar $2 billion headwind from commodities, memory, and logistics costs. Stellantis CEO Antonio Filosa described higher raw material prices as an industry-wide challenge.

The end of the $7,500 federal electric vehicle tax credit on September 30, 2025, has also reshaped the market. EV sales dropped nationally following the credit's expiration. Tesla reported a decline in global sales for the quarter. GM saw overall sales fall 6%, partly due to a smaller EV market. GM is right-sizing its capacity to align production with demand, according to Jacobson.

Hybrid sales have surged in response to high fuel prices. Edmunds data shows hybrid sales are up 27% over the past year. EVs currently account for about 6% of new car sales in the U.S. Tesla has regained market share, capturing almost 52% of new U.S. EV sales this year after losing that lead in 2024 and 2025.

Ford plans to open pre-orders for the Fathom electric truck in early 2027, with a price point under $30,000. Stellantis executives said they will provide further cost details in the fourth quarter. Tesla CEO Elon Musk discussed the company's focus on robotaxis and humanoid robots on the earnings call. He noted that capital expenditures are nearly double what they were a year earlier.

Musk also hinted at a potential merger between Tesla and SpaceX, stating that special committees at both companies are discussing the idea. He told investors that shareholders would need to support the move. The companies are expected to continue reporting on these cost and demand dynamics in upcoming filings.