Business
GM Takes $1.6 Billion Loss After Rolling Back EV Plans
By Jake Beardslee · October 14, 2025
GM Shifts Away from All-Electric Vision
General Motors revealed it will take $1.6 billion in charges as it scales back its electric vehicle (EV) ambitions. The Detroit-based automaker disclosed in a Tuesday regulatory filing that the adjustment reflects an expectation that EV adoption will slow following policy changes under President Donald Trump’s administration. Damian B Oh / Wikimedia
Policy Reversals Shape Market Outlook
GM said that the rollback of the $7,500 federal tax credit for EV purchases and the loosening of clean air regulations have prompted a strategic reassessment. The company now anticipates slower growth in electric vehicle demand across the U.S. JC Reindl / USA TODAY NETWORK via Imagn Images
From All-Electric by 2035 to Gas and Hybrids
In 2021, CEO Mary Barra had declared GM would be “all-electric by 2035.” Four years later, the company is joining other major automakers in pivoting back to gas and hybrid vehicles. GM has already committed $4 billion to expand production of gas-powered SUVs and trucks in the U.S. Junfu Han / USA TODAY NETWORK via Imagn Images
Financial Impact of the Shift
The $1.6 billion charge includes $1.2 billion related to reduced EV production capacity and $400 million in contract cancellations and settlements. GM expects to recognize these losses in the current quarter. The company’s stock dipped nearly 2% in premarket trading following the announcement. CHUTTERSNAP / Unsplash
Industry-Wide Reassessment
Other automakers are also responding to shifting federal policy. Honda, Jeep, and Ram have recently scrapped or delayed U.S. electric models. Porsche projected a €1.8 billion ($2.2 billion) hit last month as it rebalanced toward hybrids and combustion engines. Eyosias G / Unsplash