General Motors is facing a $6 billion setback as its electric vehicle (EV) transition stalls, following a sharp drop in US EV demand after the Trump administration ended the $7,500 consumer tax credit and eased emissions regulations.

EV sales in the US fell 43% between Q3 and Q4 of 2025, with GM selling just 169,887 units—well below its 1 million-unit target.

The company also recorded a $1.1 billion service charge linked to restructuring in China and expects additional, though smaller, EV-related costs in 2026.

GM has cut back EV production, sold its stake in a Lansing, Michigan battery plant, and abandoned plans to convert Lansing and Toledo factories for EV manufacturing.

It is reintroducing the low-cost Chevy Bolt with batteries supplied by China’s CATL, despite steep US tariffs.

The news follows Ford’s $19.5 billion writedown after scrapping large EV projects. Despite challenges in the EV segment, GM’s overall US vehicle sales rose 6% to 2.85 million units in 2025, maintaining its position as the nation’s top-selling automaker.