GM swallowed a $10.9 billion pill to reset its EV strategy. It says the worst is nearly over.

• General Motors took a nearly $2.3 billion charge in the last quarter amid changes to its EV plans.
• GM, which has more EV products than any other US automaker, delivered 31,000 fewer EVs to dealers last quarter.
• Profits for its gas-powered trucks are still booming.

The price tag for General Motors’ EV reset has ballooned to nearly $11 billion.

During the automaker’s Tuesday earnings update, executives said GM recorded a nearly $2.3 billion EV-related charge in the most recent quarter. That brings the automaker’s total related costs to $10.9 billion since the second half of 2025 as it slows its EV build-out and builds more gas-powered cars. The billions in write-downs are tied to cutting battery capacity and to reworking factories for gas engine production.

US demand for EVs has fallen since the expiration of the $7,500 federal EV tax credit in September, and legacy automakers have responded with billion-dollar write-downs on their EV development plans. Jeep’s parent company, Stellantis, announced a $26 billion charge in February, Ford recorded a $19.5 billion charge in December, and Volkswagen wrote off $3.5 billion in September.

On Tuesday, GM said its most recent write-down has now “substantially” completed the major cash costs it expects from the EV reset.

For General Motors — which builds nine EV nameplates, the largest lineup of any US automaker — the billion-dollar cutbacks starkly contrast with CEO Mary Barra’s once lofty EV expectations. In 2021, she predicted the company would sell more electric vehicles than Tesla by 2025.

That didn’t happen. Last year, GM sold just over 150,000 EVs while Tesla delivered nearly 590,000.

Instead, GM’s gas-powered trucks and SUVs remain its main profit engine — and that is changing the vehicles it sends to dealerships.

During the second quarter, GM shipped 31,000 fewer EVs to dealerships in North America than it did a year earlier. At the same time, it shipped 30,000 more gas-powered vehicles.

The shift is also reaching GM’s top-end brand, Cadillac, which calls itself America’s best-selling luxury EV maker — it’s developing new internal combustion engine, or ICE, cars.

“Starting next spring and continuing into 2028, we will begin launching the next generation of Cadillac ICE vehicles,” Barra said during the Tuesday earnings call.

GM’s stock price jumped more than 3% after the bell.

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