The price tag for General Motors’ electric vehicle reboot has soared to nearly $11 billion. During the automaker’s Tuesday earnings update, executives said GM recorded an electric vehicle-related charge of nearly $2.3 billion in the most recent quarter. That brings the automaker’s total related costs to $10.9 billion from the second half of 2025, as
The price tag for General Motors’ electric vehicle reboot has soared to nearly $11 billion.
During the automaker’s Tuesday earnings update, executives said GM recorded an electric vehicle-related charge of nearly $2.3 billion in the most recent quarter. That brings the automaker’s total related costs to $10.9 billion from the second half of 2025, as it slows development of electric vehicles and makes more gasoline-powered cars. The billions in writedowns are linked to reduced battery capacity and the restructuring of factories to produce gas engines.
U.S. demand for electric vehicles has fallen since the $7,500 federal EV tax credit expired in September, and traditional automakers have responded with billions of dollars in writedowns of their electric vehicle development plans. Jeep parent company Stellantis announced a $26 billion charge in February, Ford posted a $19.5 billion charge in December and Volkswagen wrote off $3.5 billion in September.
On Tuesday, GM said its most recent writedown has “substantially” completed the major cash costs it expects from the electric vehicle restart.
For General Motors, which makes nine models of electric vehicles, the largest lineup of any American automaker, the billion-dollar cuts stand in stark contrast to CEO Mary Barra’s once-lofty expectations. In 2021, he predicted that the company would sell more electric vehicles than Tesla by 2025.
That didn’t happen. Last year, GM sold just over 150,000 electric vehicles, while Tesla delivered nearly 590,000.
Instead, GM’s trucks and SUVs remain its main profit driver, and that’s changing the vehicles it ships to dealers.
During the second quarter, GM shipped 31,000 fewer electric vehicles to dealers in North America than a year earlier. At the same time, it shipped 30,000 more gasoline-powered vehicles.
The change is also affecting GM’s high-end brand, Cadillac, which calls itself the best-selling luxury electric vehicle maker in the United States: It is developing new internal combustion engine, or ICE, cars.
“Starting next spring and continuing through 2028, we will begin launching the next generation of Cadillac ICE vehicles,” Barra said during Tuesday’s earnings conference call.
GM’s stock price rose more than 3% after the bell.