The prospects of continued electric vehicle adoption in the US are in an odd place. As promised, the Trump administration and its congressional Republican allies killed off as many of the clean energy and EV incentives as they could after taking power in January. Ironically, though, the end of the clean vehicle tax credit on September 30 actually spurred the sales of EVs, as customers rushed to dealerships to take advantage of the soon-to-disappear $7,500 credit.
Predictions for EV sales going forward aren't so rosy, and automakers are reacting by adjusting their product portfolio plans. Today, General Motors revealed that will result in a $1.6 billion hit to its balance sheet when it reports its Q3 results late this month, according to its 8-K.
Q3 was a decent one for GM, with sales up 8 percent year on year and up 10 percent for the year to date. GM EV sales look even better: up 104 percent for the year to date compared to the first nine months of 2024, with nearly 145,000 electric Cadillacs, Chevrolets, and GMCs finding homes.
GM had hoped to finagle a way to extend the clean vehicle tax credit to its customers by buying them itself and then leasing them to customers. But strong opposition from Republican senator and car dealer Bernie Moreno (R-Ohio) and his colleague John Barasso (R-Md.) saw GM scrap this plan beyond the end of October.
Around the same time, GM's audit committee approved the $1.6 billion charge due to expectations that EV adoption will decrease in the US. $1.2 billion is due to changes to its EV production capacity, and another $400 million is the cash impact from canceling contracts with suppliers.
It might not be the only time, either. "The reassessment of our EV capacity and manufacturing footprint, including our investments in our battery component manufacturing, is ongoing, and it is reasonably possible that we will recognize additional future material cash and non-cash charges that may adversely affect our results of operations and cash flows in the period in which they are recognized," the company wrote in its filing.
However, GM says that its strategic realignment will not affect the current EV portfolio, and it "expect[s] these models to remain available to customers."
Destiny 2 Agape god roll for PvE & PvP