GM books a $7.1 bn loss as it scales back EV ambitions

General Motors on Thursday became the latest automaker to announce a big loss from its investments in electric vehicles, as it reckoned with a slump in sales of those cars after Congress and President Donald Trump overhauled federal policy to favor fossil fuels.GM, the largest US carmaker, said it would record a $7.1 billion loss for the last quarter of 2025 primarily to reflect the diminished value of its investments in battery factories and electric vehicle assembly lines.

The loss also reflects compensation that GM will pay to suppliers for investments they made to produce components that the automaker no longer needs. About $1.1 billion of the total reflects the cost of restructuring GM operations in China that are not related to electric vehicles, the company said.

Electric cars have become more difficult to sell after federal tax credits that covered as much as $7,500 of the cost to buy or lease an electric vehicle were eliminated at the end of September. The Trump administration has also loosened environmental and fuel economy standards that had put pressure on carmakers to sell more electric vehicles.

“With the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations, industrywide consumer demand for EVs in North America began to slow in 2025,” GM said in a securities filing Thursday.

In October, GM announced a third-quarter loss of $1.6 billion stemming from its electric vehicle assets. The company warned that it might book further losses related to electric vehicles in the coming months. But those losses “will be significantly less than the EV-related charges incurred in 2025,” GM said.Ford Motor said last month that it would take a $19.5 billion hit to its profits related to its electrical vehicle business.