GM Is Selling More EVs Than Ever. Here's Why It's Out $1.6 Billion

"On paper, General Motors should be the envy of the American automotive industry. It now sells more electric vehicles across more segments and price points than any other manufacturer, from luxury pickup trucks to, soon, the sub-$30,000 Chevrolet Bolt. It's been running second to Tesla in U.S. EV sales for some time now, and in the third quarter of this year, it easily passed the total electric sales it saw in all of 2024. All of that feels like a big win."

"Despite strong electric sales this year, GM officials today said that without the EV tax credit, the carmaker is expecting far less demand than it's seen thus far. That means retooling its factories to avoid an excess of EV inventory it can't sellas well as to make more profitable gas-powered cars. "Following recent U.S. government policy changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow," the carmaker announced in a regulatory filing posted today."

""These charges include non-cash impairment and other charges of $1.2 billion as a result of adjustments to our EV capacity." GM announced another $400 million in charges "related to contract cancellation fees and commercial settlements associated with EV-related investments," bringing the grand total to $1.6 billion."

General Motors recorded $1.6 billion in additional costs to adjust electric vehicle output. GM sold a record number of EVs in the third quarter and ranks second to Tesla in U.S. EV sales. GM now offers EVs across more segments and price points, including luxury pickup trucks and a forthcoming sub-$30,000 Chevrolet Bolt. The removal of EV tax credits and reduced emissions penalties are expected to slow EV adoption. GM will retool factories to avoid excess EV inventory and to build more profitable gasoline vehicles. Charges include $1.2 billion of non-cash impairment and $400 million for cancellations and settlements.

Read at insideevs.com