GM takes $1.6B hit as EV sales slump
General Motors just announced a $1.6 billion charge to its quarterly earnings for the quarter ending September 30, 2025, mostly because of canceled EV contracts and writing down the value of its electric vehicle plants.
The charge is due to a reassessment of EV-related assets and contract cancelations, stemming from policy changes that are expected to slow EV adoption, rather than directly from current lower sales.
Fewer people are buying EVs in the US since the federal $7,500 tax credit ended and emissions rules were relaxed.
The end of federal tax credit
The end of the tax credit—thanks to President Trump's One Big Beautiful Bill Act—and looser emissions standards have made it harder for states to push stricter EV policies.
GM is now rethinking its electric future and bracing for more costs ahead.
Ford CEO predicts pure EVs could drop to just 5%
It's not just GM feeling the pressure—Ford, Nissan, and Honda are all slowing down their EV launches and focusing more on hybrids or traditional cars.
Ford's CEO Jim Farley even predicts that pure EVs could drop to just 5% of US sales as buyers look for more flexible options.
Basically, what's happening at GM is a sign of bigger changes across the auto industry right now.