Oct 21 (Reuters) - General Motors ( GM ) 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.

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.

Shares rose 6% in premarket trading.

GM's quarterly adjusted earnings per share dropped to $2.80,

beating LSEG analysts' expectation of $2.31.

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.

Barra in 2021 announced the company's ambition to produce

only EVs by 2035, a goal she has since stopped referencing

publicly, instead saying customer demand will guide the

automaker's lineup.

Sales of EVs were strong for GM and across the industry in

the third quarter, as shoppers raced to take advantage of the

tax credit, but they still comprised less than 10% of the

company's overall sales.

To spur on consumer demand, GM planned to offer a program

that would have allowed its dealers to continue offering the tax

credit on EV leases. It has since backtracked on the initiative

following backlash from lawmakers, including Republican Senator

Bernie Moreno of Ohio.

Ford also scrapped its program with the same aim. Other

automakers, including Hyundai and Stellantis, are offering

incentives to slash the prices consumers pay for their EVs.