What can GM post-earnings performance tell about Investors?

The performance of the General Motors stock, on Wednesday, shows investors are completely confused about cars. General Motors–2.19% reported a bigger profit than expected and raised its full-year financial forecasts amid a recovery in overall US auto sales.

But the stock tanked, making it even clearer than it already was that investors just don’t know what to do in the current automotive cycle. Earnings per share, disclosed Tuesday morning, came in at $2.21, while Wall Street was looking for $1.72.

Management now expects a 2023 operating profit of between $11 billion and $13 billion, with earnings of between $6.35 and $7.35 a share. In January, management expected an operating profit of $10.5 billion to $12.5 billion, with earnings of $6 to $7 a share.