Elon Musk Podcast GM Writes Down $1.6B on EVs Amid Slower Demand
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Oct 15, 2025 GM faces a significant $1.6 billion hit due to disappointing EV demand and production delays. The company is renegotiating contracts to adapt to the new landscape, while also tackling software challenges with its Ultify platform. Competition is heating up in the mid-priced EV market, fueled by Tesla and new players. In a strategic pivot, GM is shifting focus to hybrids as a more immediate solution, igniting a debate on the best path forward between hybrids and full EVs.
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GM Lowers EV Near-Term Expectations
- General Motors is taking a $1.6 billion impairment tied to its EV business due to lower demand and slowed product development.
- The charge reflects reduced near-term EV volume expectations and a scaled-back investment pace across batteries and assembly.
Battery Plant Pullback Lowers Production
- GM will reduce planned battery plant expansions and reassess its joint venture scale with LG Energy Solution.
- That decision forces lower near-term EV volumes and ripples through battery suppliers and EV parts manufacturers.
Delays Create a Demand Feedback Loop
- GM has delayed launches like the Silverado EV and Equinox EV, pushing schedules into 2025 and shifting retooling toward hybrids.
- Lower volumes will reduce dealer EV inventory and could weaken consumer visibility and adoption further.