GM posts $2.8B profit, but cautious tone sinks share price

Posted at 4:55 PM, Aug 04, 2021
and last updated 2021-08-04 16:55:39-04

DETROIT (AP) — General Motors posted a healthy $2.8 billion second-quarter profit Wednesday, but its cautious outlook for the rest of the year spooked investors.

The Detroit automaker made the strong profit despite a global shortage of computer chips that have forced it and other companies to temporarily close factories.

While the GM raised its outlook for the year, it also cautioned about high commodity prices and lower production due to the chip shortage. And it warned that the highly contagious delta variant of the coronavirus could hamper its supply chain. The cautious tone rattled investors, who pushed GM shares down.