American automaker General Motors Co. announced on Thursday it will take another $6 billion in charges related to production cuts in electric vehicle and battery operations. This comes as financial problems grow from the cooling market for EVs in the United States.
This news brings the total writedowns from GM’s big move into electric cars to $7.6 billion, following a $1.6 billion hit in the third quarter.
These changes happened as the company moved away from EVs after a major shift in US policy under President Donald Trump.
Trump, who believes climate change is not real, has stopped major programs that helped EVs, which were supported by the previous leader, Joe Biden. While the carmaker warned of more financial hits this year, these steps are meant to protect future reported profits.
“With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations, industry-wide consumer demand for EVs in North America began to slow in 2025,” GM said in the filing.
“As a result, GM proactively reduced EV capacity,” it added.
Market Reaction Following the announcement of another $6 billion writedown in charges, the General Motors stock will be in focus on Friday.
On Thursday, the GM stock climbed 3.93% to close at $85.13.
On Friday at 6:42 a.m. EST, the stock was trading at $83.50, down by $1.63, or 1.91%, in pre-market session.
Detroit-based GM will include the latest EV cost and a separate $1.1 billion loss — mostly from restructuring its joint venture in China, SAIC General Motors Corporate Limited — in its fourth quarter results.
This development highlights the confusion caused by President Trump’s actions to remove government support for EVs and the fact that Americans still prefer gasoline-powered cars. GM and its competitors spent billions on EVs over the last few years to follow tough environmental laws and meet their own high hopes that buyers were ready for them.
GM’s profit warning follows an announcement from Ford on December 15 that it will lose about $19.5 billion over several years due to the changing EV policy outlook.
During Biden’s time in office, GM CEO Mary Barra spent heavily to build up EV factories. In 2021, the company set a goal to have its cars and trucks produce no emissions by 2035.
Barra has mentioned that EVs are still a priority for the long term, but she noted that the company is now changing its spending to match what customers actually want to buy.
