General Motors Incurs $7.1B In Charges In Q4 Pertaining To Slowing EV Demand, China Business Restructuring

• The automaker noted on Thursday that consumer demand for EVs in North America began to slow in 2025.
• The automaker also hinted that it expects to incur further charges in 2026, though less than the EV-related charges in 2025.
• However, the company also clarified on Thursday that its EV capacity realignment will not impact the portfolio of current EVs in production.

Automaker General Motors (GM) said on Thursday that it will incur special charges of $7.1 billion in the fourth quarter of 2025 as it pulls back on its EV capacity in North America and restructures its China joint venture.

The company said in a filing with the Securities and Exchange Commission (SEC) that it expects to record $6 billion in charges for the three months through the end of December pertaining to its EV business in North America. The remaining $1.1 billion charge is non-EV related and mainly relates to the company’s previously announced restructuring of its China joint venture SAIC General Motors Corporate Limited.

GM shares slipped 2% after-hours at the time of writing.

EV-Related Charges

GM in October said that it took a $1.6 billion charge in the third quarter (Q3) after it pulled back on EV capacity and also signaled that more write-downs are in store.

The automaker noted on Thursday that consumer demand for EVs in North America began to slow in 2025 as a result of the expiry of $7,500 federal tax credit on the purchase of EVs by September-end, forcing the company to review its EV capacity and investments. The incentive termination was also reflected in GM’s Q4 delivery numbers, where EV sales dived 43% to 25,219 units.

GM said that the $6 billion in Q4’s EV-related charges includes non-cash impairments and other non-cash charges of approximately $1.8 billion as well as supplier commercial settlements, contract cancellation fees, and other charges of approximately $4.2 billion. The automaker hinted that it expects to incur further charges in 2026, though less than the EV-related charges in 2025. The automaker also said it may incur additional charges related to the proposed regulatory changes to the greenhouse gas emission standards which could result in impairment of its emission credits.

However, the company also clarified on Thursday that its EV capacity realignment will not impact the portfolio of current EVs in production as it plans to continue making them.

Rival Moves

GM’s rival Ford said in December that it expects to take $19.5 billion in EV-related special charges through Q4 2025, 2026 and 2027. The company realigned its EV strategy, dropping plans for larger electric vehicles and committing to manufacture cheaper EVs based on its new vehicle platform.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around GM fell from ‘bearish’ to ‘extremely bearish’ territory over the past 24 hours, while message volume rose from ‘low’ to ‘high’ levels.

A Stocktwits user now sees the stock dip below $80 per share.

Another sees the stock lose about half its value.

GM stock has gained 67% over the past 12 months. 

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