General Motors will record a $1.6 billion loss to scale back its electric vehicle operations after recent U.S. policy changes ended the $7,500 federal EV tax credit and loosened emissions rules.
The company said its audit committee approved the charge on Oct. 7 for the quarter ending Sept. 30. The total includes $1.2 billion in non-cash impairments and $400 million in cash costs tied to contract cancellations and commercial settlements.
GM cited slower-than-expected EV adoption following the expiration of federal purchase incentives on Sept. 30 under President Donald Trump’s One Big Beautiful Bill Act, which rolled back multiple energy-related programs.
The automaker said its review of EV and battery investments is ongoing and warned of potential future charges. Current Chevrolet, GMC, and Cadillac EV models remain available to consumers.
The DX Brief
- GM shares fell 2.5% premarket before rebounding later in the session
- $1.6B total loss includes $1.2B in impairments and $400M in cash settlements
- EV tax credit ended Sept. 30 under Trump’s One Big Beautiful Bill Act
- GM expects lower EV sales next quarter as incentives expire
Read the full article at ZeroHedge