GM's EV Reset Costs Hit $10.9 Billion as It Shifts Back to Gas-Powered Vehicles
General Motors reported a $2.3 billion EV-related charge in its latest quarter, bringing total costs from its EV strategy reset to $10.9 billion since the second half of 2025. The automaker is cutting battery capacity, reworking factories for gas engine production, and shipping fewer EVs to dealerships—31,000 fewer in Q2 compared to a year earlier—while increasing gas-powered vehicle shipments by 30,000. The shift follows the expiration of the $7,500 federal EV tax credit in September, which dampened US demand. GM's luxury brand Cadillac, despite being America's best-selling luxury EV maker, is also developing new internal combustion engine vehicles launching from spring 2025 through 2028. CEO Mary Barra's 2021 prediction that GM would outsell Tesla in EVs by 2025 did not materialize; GM sold just over 150,000 EVs last year versus Tesla's 590,000. GM says the major cash costs from the EV reset are now substantially complete, and its stock rose over 3% after the earnings call.
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