GM is absorbing $7.6B in EV-related charges in 2025 as it scales back plans, shifts capacity to trucks and refocuses on near-term profitability.
General Motors (GM) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
General Motors Company (NYSE:GM) said Thursday it will record $7.1 billion in special charges for the fourth quarter of 2025, reflecting a pullback in its electric vehicle (EV) strategy and restructuring efforts tied to its operations in China. In a filing with the Securities and Exchange Commission (SEC), the Detroit automaker said approximately $6 billion of the charges are related to changes in its EV plans amid weakening demand in North America.
GM says it will take a $6 billion hit tied to scaling back its EV strategy in the US. The automaker warns that additional EV-related costs are likely in 2026 as supplier talks continue.
General Motors warns of yet another EV-related writedown, less than a month after rival Ford Motor announced its own multibillion-dollar charges related to fading demand for EVs.
GM is the latest car company to pull back from EVs in response to the Trump administration's policies and fading demand.
General Motors expects to incur a $6 billion charge in the fourth quarter from a review of its electric vehicle manufacturing capacity following the end of a $7,500 EV tax credit and slowing consumer demand.
General Motors said on Thursday it would take a $6 billion charge to unwind some electric-vehicle investments, the latest car company to pull back from EVs in response to the Trump administration's policies and fading demand.
General Motors will record $7.1 billion in special charges during Q4 2025 related to its pullback in electric vehicles and restructuring efforts in China. GM is set to report its fourth-quarter results on Jan. 27.
Shares of Ford and GM have logged nice gains in the past year, and Piper Sandler says that capitulations on EVs bode well for their performance going forward.
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In 2025, GM and F faced numerous headwinds from tariffs, EV demand destruction, and impairment charges, but notably diverged in mitigation strategies. GM emerges as the winning bet with robust SaaS monetization, higher adj EBIT margins, and lower EV impairment costs, albeit with elevated tariff exposure. GM offers a robust capital appreciation prospect to $101, warranting an upgraded Buy rating upon a moderate retracement attributed to the overbought technical indicators.