General Motors $GM ( ▼ 2.66% ) is pulling back further on electric vehicles, announcing it will take a $6 billion charge in the fourth quarter tied to its EV strategy reset. The disclosure sent GM shares down about 2% in premarket trading Friday, underscoring investor unease around automakers’ costly EV bets.
The charge marks one of the largest EV-related write-downs GM has taken to date as demand cools and policy support weakens.
EV Ambitions Meet Reality
In a public filing, GM said the charge reflects a slowdown in consumer demand for EVs across North America. The company pointed to the expiration of certain consumer tax incentives and a loosening of emissions regulations, both of which reduced the urgency for buyers to switch to electric vehicles.
As a result, GM said it proactively cut EV production capacity, effectively admitting that earlier demand assumptions no longer hold.
China Adds Another Hit
On top of the EV pullback, GM disclosed an additional $1.1 billion charge related to the restructuring of a joint venture in China. That move highlights the broader pressure GM is facing internationally, not just in its North American EV operations.
Taken together, the charges signal a wider reset rather than a one-off accounting adjustment.
Not Just a GM Problem
GM isn’t alone. Rival Ford Motor $F ( ▼ 1.39% ) recently announced a $19.5 billion charge tied to its own EV retreat, reinforcing the idea that the industry may have overbuilt for electric demand that hasn’t materialized as quickly as expected.
For investors, the message is becoming clearer: the EV transition is still happening, but it’s proving far more expensive, slower, and bumpier than automakers once promised.