GM Takes $6 Billion EV Write-Down as Electric Vehicle Demand Slows in the U.S.

General Motors announced it will take a $6 billion charge related to scaling back its electric vehicle investments, highlighting the growing challenges facing the U.S. EV market. The charge, disclosed in a regulatory filing, reflects reduced EV production plans, supplier contract cancellations, and broader shifts in market demand following policy changes under the Trump administration.

The majority of the writedown—about $4.2 billion in cash—stems from canceled contracts and settlements with suppliers that had prepared for significantly higher EV production volumes. GM said these suppliers expanded capacity based on earlier projections that no longer align with current demand. The automaker plans to record the charge as a special item in its fourth-quarter earnings and expects additional, though smaller, EV-related charges in 2026 as negotiations with suppliers continue.

Despite the pullback, GM emphasized that it remains committed to its U.S. EV lineup, which includes roughly a dozen electric models—the largest selection among U.S. automakers. The company said these vehicles will continue to be available to consumers, even as it adjusts production levels and investment timelines. GM shares fell about 2% in after-hours trading, though they closed the regular session up nearly 4%.

The announcement follows a much larger move by Ford Motor, which recently revealed a $19.5 billion writedown tied to canceling several EV programs. Both companies are responding to weakening demand after the elimination of the $7,500 federal EV tax credit on September 30, which led to a sharp decline in sales after a brief pre-deadline buying surge.

Industry-wide, EV sales growth has slowed dramatically. Research firm Omdia reported EV sales rose just 1.2% in 2025, while Edmunds expects EVs to account for about 6% of U.S. vehicle sales in 2026, down from 7.4% in 2025. GM’s own EV sales fell 43% in the fourth quarter following the tax credit’s expiration.

GM has also adjusted its manufacturing strategy, pausing battery production at two joint-venture plants, cutting shifts at an EV-only Detroit factory, and repurposing a planned Michigan EV facility to build gas-powered SUVs and pickups. Analysts have noted that GM’s limited hybrid offerings could pose a risk as consumer interest increasingly shifts toward hybrid vehicles.