Catenaa, Thursday, October 16, 2025- General Motors(GM) on Tuesday reported that it was taking losses totaling $1.6 billion related to planned changes to its EV rollout amid lingering consumer doubts.
The company attributed some of the change to President Donald Trump’s elimination of the $7,500 in EV purchasing incentives enacted by President Joe Biden. The credit officially expired on September 30.
“Following recent US 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,” GM said in a filing.
Plunging sales at Tesla, still the US leader in EV sales, are also contributing to the weakening outlook. Its second-quarter sales dropped almost 13%, and CEO Elon Musk has warned of some “rough quarters” ahead for the company.
The changes threaten to leave the US behind in what many still consider the future of automobiles.
In July 2024, EV sales officially overtook sales of conventional autos in China. There and in nearby countries, the cost of an electric vehicle has been falling more rapidly than in the United States, thanks largely to increased competition from the Chinese manufacturers that now dominate the global EV market.
In the second quarter of 2025, new EV sales declined by 6.3% year on year, according to Cox Automotive, which said the growth trajectory for EVs “has been curbed.” EV sales got a boost in the third quarter, but analysts said that was most likely the result of the looming expiration of the tax credit.
Last month, The Wall Street Journal reported that GM had spent more to lobby the federal government in 2025 to fight clean air and fuel economy rules than any company other than Facebook parent Meta.
Ford CEO Jim Farley said this month that EV sales could fall by around 50% after the EV tax credits expire.
EVs currently cost about $7,000 more, according to Kelley Blue Book data.
