Key facts
- General Motors recorded a $2.3 billion EV-related charge in the most recent quarter.
- The automaker's total costs associated with its EV strategy reset have reached $10.9 billion.
- GM is reducing battery capacity and retooling factories for gas engine production.
- The company is shipping fewer EVs and more gas-powered vehicles to dealerships.
- Cadillac will introduce new internal combustion engine vehicles from spring 2025 through 2028.
General Motors has incurred nearly $11 billion in costs to reset its electric vehicle strategy, with executives stating that the most significant financial impact is nearing completion. The automaker recorded a $2.3 billion EV-related charge in the most recent quarter, bringing the total to $10.9 billion since the latter half of 2025. These write-downs are attributed to reducing battery capacity and reconfiguring factories to produce more gasoline-powered vehicles.
The shift comes as demand for EVs has softened following the expiration of the federal tax credit. Other legacy automakers have also announced substantial charges, including Stellantis ($26 billion), Ford ($19.5 billion), and Volkswagen ($3.5 billion).
GM's decision contrasts with CEO Mary Barra's earlier prediction that the company would outsell Tesla by 2025. Last year, GM sold just over 150,000 EVs, significantly fewer than Tesla's nearly 590,000. The company's profitability continues to rely heavily on its gasoline-powered trucks and SUVs.
This strategic pivot is reflected in dealership shipments, with GM sending 31,000 fewer EVs and 30,000 more gasoline vehicles to North American dealerships in the second quarter compared to the previous year. Even Cadillac, described as America's best-selling luxury EV maker, is developing new internal combustion engine models, with launches planned from spring 2025 through 2028.
Following the earnings update, GM's stock price saw an increase of over 3%.