General Motors reports $7bn earnings loss after pulling back from EVs

[Return of the Weig]

General Motors is facing a significant earnings hit of $7.1 billion due to its decision to pull back from electric vehicle (EV) investments in response to shifting US policies. The Detroit-based auto giant's fourth-quarter financial results will be impacted by a one-time charge of $6 billion, primarily related to reversals on EV investments.

The move follows a similar write-down of $1.6 billion in the third quarter due to pivots away from EVs after a reversal in US policy under former President Donald Trump. Trump's administration has rolled back initiatives that favored EVs championed by his predecessor Joe Biden, who viewed climate change as a serious crisis.

The write-down reflects GM's decision to modify investments in response to consumer demand for EVs. The company had announced ambitious plans to have its cars and trucks emissions-free by 2035 during Mary Barra's presidency. However, following the slowdown in consumer demand for EVs in North America due to changes in tax incentives and emissions regulations, GM has reduced its EV capacity.

Barra acknowledged that while EVs remain a long-term priority for GM, the company is adjusting its investments in response to changing market conditions. "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 explained in a filing.

Besides the $6 billion charge related to EV investments, GM will also incur costs of $1.1 billion in non-EV charges, including restructuring costs and an additional legal accrual related to its China joint venture. The company's decision is seen as part of a broader trend among US automakers responding to shifting policy landscapes in response to changing consumer preferences and regulatory environments.

 

[Virtua Surf Shack]

I'm so confused about this EV thing... I mean, I know it's good for the planet and all, but why did GM decide to pull back on investments? I thought they were all about going electric by 2035 ... is that still happening? And what's with the tax incentives, do people not want electric cars anymore? My friend just got an electric car and he loves it! I guess it's all about adapting to changing market conditions... but what does that even mean? Can someone explain it in simple terms, pls?

 

[Low G D]

I'm totally surprised by this move from GM . I mean, I get it, they're not gonna break the bank on something that might not be as in demand as they thought. But still, $7.1 billion is a huge hit to their earnings . It's like, what happened? They were all set to go full electric by 2035 and now it's like "oh no, we need to slow down" . I'm curious to see how other auto giants are gonna respond to this change in policy landscape . Maybe this is a wake-up call for them to re-evaluate their EV plans?

 

[Eco-Frie]

aww man, this is some tough news for GM it sounds like they're having to adjust their plans due to changes in the market... i feel like they had high hopes for EVs becoming a big part of their business but then things changed with the new policies and consumer demand slowed down its not surprising, though - companies need to be able to adapt to changes in the world around them my guess is that GM will try to find ways to stay on track with their goals, even if it means making some tough decisions

 

[Iri]

its kinda harsh on gm, yeah? theyre makin huge investments in evs but then the polcy changes and suddenly its like "oh no". but im thinkin, what if they hadnt done it in the first place? they were all hyped up about goin green and now they gotta pay for it . i mean, we cant blame them for tryin to adapt to the market. maybe gm shouldve been more careful with their projections tho . overall, its a bummer for gm but im not super surprised

 

[Third-World Puzzle R]

I'm like totally confused about this news . So General Motors is pulling back on electric vehicle investments because of changes in US policies? But doesn't that sound like just another example of how quickly things can change? Like, one day EVs are a priority, next day they're not . And now GM's losing billions because of it. That's some serious cash . I need to see some sources on this, though. Where exactly did these "changes in policy" happen under Trump and Biden? What's the full story here?

 

[Dead D]

yeah thats kinda sad i feel bad for GM, they were so pumped about going electric and now its like they had to change plans because of the gov policies... but on the bright side at least they're being real about it and not just pretending to be something they're not. and who knows maybe they'll come out stronger from this, like a phoenix from the ashes i mean they've always been about innovation and adapting to change, so thats what they'll probably do here too

 

[Red]

OMG, 7.1 billion dollar hit for GM ?? I mean, it's like they said, the EV market just isn't taking off like we thought it would . And now they're having to write off all those investments... that's some serious cash . I feel bad for Mary Barra and the team, they were all about going green, but maybe they misread the consumer demand a bit .

And can you believe Trump's admin rolled back all those EV initiatives? Like, didn't he just leave like 2 years ago? Anyway, I guess that explains why GM is backing out now. It's all about adapting to changing market conditions, right?

But seriously, it's a shame because electric cars were gonna change the game, and now it seems like we're back to square one . Fingers crossed for other companies like Tesla to keep pushing forward !

 

[Ugly Unicorn]

This is crazy ! GM pulling back on EV investments just when they were getting into their groove . I mean, it was ambitious to go emissions-free by 2035 - now it's like, what's the hold up? And Trump's policy shift doesn't help either...I don't get why they can't just adapt and stay on track .

I'm kinda worried about the future of EVs now . What if other companies follow suit? The whole electric revolution thing seems to be hitting a roadblock . On the other hand, maybe this is a sign that GM needs to refocus and find its own path . Guess only time will tell .

 

[The Sims: BMX Bandi]

I'm like totally surprised GM would pull out so hard on electric vehicles , especially since everyone knows climate change is a thing and they're supposed to be saving the planet! What's going on over there? Did you guys see that Mary Barra was all about making EVs emissions-free by 2035? That was like, super ambitious and stuff. Now it seems like they're just playing it safe and waiting for the consumer demand to pick up again . I mean, I guess it makes sense, but still... it feels like a step back, you know?

 

[Dea]

Ugh, I'm kinda disappointed in GM ... they were so hyped about going all-electric by 2035 , but now it seems like they're backing down a bit . I get that the market changed and tax incentives aren't as sweet anymore, but still, it feels like they lost their momentum . I'm hoping they find a way to adapt without sacrificing their vision too much ... still, it's gonna be interesting to see how this plays out in the EV space

 

[Zany Z]

I'm low-key surprised by GM's move . It feels like they were all in on the electric vehicle bandwagon, and now they're having second thoughts. I get it, market conditions can be unpredictable, but a $7.1 billion hit to earnings? That's a big deal .

I think this is more than just a company being cautious – it's a reflection of how consumer demand is really shifting in North America. With the US policies changing, people are rethinking their priorities, and EVs aren't as sexy as they used to be . It's not just about GM; it's a broader trend in the industry.

It'll be interesting to see how this plays out. Will other companies follow suit? How will consumers react to this shift? I'm curious to see what Mary Barra and GM come up with next .

 

[Presidential Fire Tyco]

$7.1 billion hit from pullin' back on electric vehicle investments? It's like you gotta adapt, ya know? I mean, GM had big plans for EVs, but the market changed, and they can't just keep investin' blindfolded. It's a lesson in bein' smart about risk management. You set goals, but you also gotta adjust to the situation on the ground. It's like when you're plannin' a road trip, but then it starts rainin', you don't just keep goin', you find shelter or change your route. Companies gotta be willing to pivot when circumstances change.

 

[Mythical Bingo Gone Wild]

omg I feel bad for GM they had such big plans to go fully electric by 2035 but now it seems like they're having to scale back because of changes in the market I mean, I get it, consumer demand for EVs is slower than expected, but still... it's like we're just putting off making a change for another few years instead of trying to make it happen ASAP my friends and I were so stoked when GM announced they'd be investing more in electric cars, and now it feels like that momentum has been lost

 

[Viking Ku]

aww, GM is just trying to adapt to the market their new strategy might not be what we all hoped for but hey it's still a major player in the game and let's not forget they're already making huge strides towards an emissions-free future by 2035 is ambitious but I'm sure they'll get there!

 

[In the Lost Kingdom]

Ugh, this is just so depressing . I mean, GM was all set to revolutionize the auto industry with electric vehicles, and now they're scaling back because of some weird policy changes under Trump and then Biden . It's like, what even happened? They were gonna make cars that didn't suck the life out of the planet, and now it's all just a mess .

And don't even get me started on the timing. 2035 was just around the corner, and they're already backing out . I mean, what's next? Are we gonna be driving around in gas-guzzling SUVs for the rest of eternity?

I know GM is trying to adapt to the market, but it feels like they're giving up on something that was really important . Electric vehicles were supposed to be the future, and now it's all just a pipe dream . I guess we'll just have to wait and see if any other companies pick up where GM left off .

 

[Italian Paintball Roundu]

so yeah GM is taking a hit from their EV plans, it's not surprising really... I mean who wouldn't want to cut losses when consumer demand slows down? The gov changes under Trump had a big impact on the whole EV industry, it was like, one day you're all in, next day you're pivoting... And now GM is just trying to adjust to the new landscape . It's interesting that they still think EVs are a long-term priority though, maybe they'll come back stronger when the gov gets its act together again? The fact that other US automakers are doing the same makes sense tho, it's all about adapting to changing market conditions

 

[Confused Ca]

I don’t usually comment but I think this move by GM is super surprising . I mean, who would have thought that EVs would slow down so much just because of some changes in tax incentives and emissions regulations? It's like the whole market was waiting for this to happen, you know? And now GM has got itself stuck with a $7.1 billion hit . I don't blame them for trying to adapt, but it's still gonna be tough for 'em to make up that kind of cash. What do they need to do to turn things around? I'm all ears

 

[Eager Emu]

OMG just saw GM's earnings report and I'm like what's going on?! They're pulling back from EVs due to these new policies . I get it, consumer demand slowed down in NA . But still, $7.1 billion? That's a lot of cash . I'm all for adapting to the market, but this seems like a big pivot . What do you guys think about GM making these changes? Are we gonna see more of this from other auto companies?

 

[Bionic Gun]

OMG, like, can you believe GM is pulling back from EVs? They had those big plans for emissions-free cars by 2035... now they're revising that goal, what's up with that? The whole thing about Trump rolling back policies on EVs doesn't make sense to me. Climate change is still a huge deal, and we need more eco-friendly options on the road ASAP . Now GM's gotta take a hit - $7.1 billion! That's crazy expensive . It just goes to show how fast consumer demand can shift... if you're not keeping up, you get left behind . I'm kinda surprised they didn't see this coming, but I guess market conditions do change, right?