General Motors shares in reverse despite earnings beat

Shares in General Motors, one of the largest car-makers in the US, fell on Tuesday's early trading despite the fact that the company posted record results for 2016, including outperforming expectations for fourth quarter revenue and earnings per share.

Net income during the fourth quarter fell 71% compared with the same period in 2015, with the final three months of 2016 reaching $1.84bn, down from $6.27bn for the last quarter of the previous year.

Wall Street had expected earnings per share of $1.17, but GM surpassed that with $1.28 per share excluding special items.

Revenue for the quarter increased by 11% to $43.9bn, compared with $41.5bn in 2015.

General Motors' stock was down by 4.51% at 15:44 GMT.

The company saw particularly strong sales results in the US and China, with over three million vehicles being sold in the former, and a 7% rise in deliveries in the latter.

GM reiterated its forecast for 2017, expecting earnings to be higher than 2016 as it releases several new models of SUV, and continues to grow its finance subsidiary GM Financial.

Its "Big Three" car-maker rivals Ford Motor Co and Fiat Chrysler have already reported financial results for the last quarter of 2016, with all three experiencing a dip in sales as industry experts say it has hit a peak.

"By almost any measure, 2016 was a great year for our business and I am confident we can achieve even stronger results," GM Chairman and CEO Mary Barra said in a statement. "We'll work to build on our momentum, while continuing to drive our company to innovate and shape the future of mobility."