GM's EV Reset Has Accumulated Nearly $11 Billion in Losses
Taylor Wilson
General Motors' EV strategy reset has racked up ~$10.9 billion in cumulative costs; management says the bulk of the write-downs are "essentially complete," but whether gas-powered vehicles can fill the growth gap remains unproven.
$10.9 billion in write-downs — where did the money go?
GM booked ~$2.3 billion in new EV-related impairments this quarter, driven by two moves: cutting battery capacity and converting some plants back to gas-vehicle production.
This means → GM isn't "losing money on EVs" in the operating sense — it is scrapping capacity it already built, taking the hit upfront on the balance sheet.
Management says the major cash outlays are "essentially complete." In plain terms = the deepest cuts are done, and the odds of another large impairment round have dropped significantly.
GM has the most EV models of any legacy automaker in the US — so why is it pulling back?
GM currently sells nine EV models in the US, more than any traditional automaker, yet its profit engine remains gas-powered pickups and SUVs.
In Q2, EV shipments to North American dealers fell by 31,000 units year-on-year, while gas-vehicle shipments rose by 30,000 — the channel is already shifting.
This reflects a key backdrop: the federal $7,500 EV tax credit expired in September 2025, and US EV demand has visibly softened since. GM's pivot tracks that demand shift.
Cadillac was "America's best-selling luxury EV brand" — what changed?
CEO Mary Barra announced that starting spring 2027 and running through 2028, GM will roll out next-generation Cadillac gas-powered models.
Cadillac had marketed itself as America's top-selling luxury EV brand. This means → even the division most associated with GM's electric future is now formally retreating to combustion.
Barra predicted in 2021 that GM would outsell Tesla in EVs by 2025. The actual result: GM sold just over 150,000 EVs in 2025; Tesla delivered nearly 590,000 — a gap of almost 4×.
Every legacy automaker is writing down EVs — where does GM stand?
The industry-wide EV impairment wave has run for several quarters: Stellantis (Jeep parent) booked $26 billion, Ford $19.5 billion, Volkswagen $3.5 billion.
GM's ~$10.9 billion sits in the middle, but it is the only major automaker to explicitly say the reset is "essentially complete."
This means → if management's call is right, GM will be the first to turn the page on this impairment cycle, carrying less residual uncertainty than peers.
Why did the stock rise — and what comes next?
After the earnings release, GM shares climbed more than 3% in after-hours trading — the market responded positively to the "clean slate" signal.
In plain terms = investors read it as: the bad news is already on the books, no more large landmines ahead.
But the next proof point is clear: whether gas-vehicle revenue can fill the growth gap left by EV contraction — that is what will determine whether the rally holds.
Content is for reference only, not financial advice.