General Motors’ (GM) recent plans to scale back EV production in the US cost the company over $7 billion in 2025. Despite selling nearly 100,000 electric vehicles last year, GM is calling for “significantly” lower EV volume this year.
General Motors expects EV volume to drop in 2026
After reporting Q4 and full-year 2025 earnings on Tuesday, GM’s CEO, Mary Barra, said “we continue to believe in EVs,” despite the recent adjustments.
GM said in a regulatory filing on January 8 that the changes will cost it $6 billion in extra charges. The automaker reported a one-time $7.6 billion hit in 2025 due to “EV-related charges.”
The bulk ($6 billion) came in the fourth quarter, with $4.2 billion for contract cancellations and supplier settlements and another $1.8 billion primarily related to its decision to discontinue production of the BrightDrop electric van.
Looking ahead, GM expects to see significantly smaller, but still material, EV-related charges. The company is calling for EV losses to improve by $1-$1.5 billion in 2026 from “right-sizing capacity and significantly lower volume.
The extra charges dragged on GM’s full-year 2025 earnings, with net income dropping 55% to $2.7 billion. GM raised its 2026 profit guidance to $13-$15 billion on higher ICE truck and SUV sales.
GM’s recent EV adjustments are due to the Trump administration’s policy changes, including killing off the $7,500 federal tax credit at the end of September.
Despite scaling back, GM sold more electric vehicles in the US than any other automaker outside of Tesla. GM sold nearly 170,000 EVs in the US last year, more than double the roughly 84,000 that crosstown rival Ford sold in 2025.
GM has an EV in nearly every segment across the Chevy, GMC, and Cadillac brands. The Chevy Equinox EV, or “America’s most affordable 315+ mile range EV,” was the third-best-selling electric vehicle behind the Tesla Model Y and Model 3.
With the new 2027 Chevy Bolt on its way to dealerships, GM will add another affordable EV option to its lineup with starting prices under $30,000. However, the Bolt is already on borrowed time as GM plans to convert its Kansas facility to build gas-powered cars exclusively.
With several new low-cost options arriving, such as the updated Nissan LEAF and Toyota C-HR, will GM give up its lead in affordable EVs?
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