GM Just Suffered A $6B Loss (And It's All Because Of EVs)

Unless you are a financial news connoisseur or you are a shareholder of any given company, year-end or quarterly financial reports aren't typically all that interesting to read or write home about. However, it's worth noting that General Motors reported a $6 billion loss in January 2026. But that isn't just an indicator of a particularly rough sales year or any specific model like the Equinox, Corvette, or Silverado tanking in sales. In fact, GM reported record sales for its SUVs, trucks, and Cadillac models. 

Instead, the loss is the result of a decision regarding electric vehicles. GM was one of the leading car brands moving toward electric, with the brand shifting production toward EVs in many of its factories. However, the $7,500 EV tax credit ended in September 2025, and the Trump Administration has rescinded new fuel economy standards that were pushing automakers toward electric. As a result, many manufacturers in the industry are backing away from earlier plans to increase the electric offerings in their lineups. During the fourth quarter of last year, GM reported a 43% drop in EV sales. The $6 billion loss stems in part from contract cancellations and other supplier settlements that won't end up panning out.

It's not the first loss GM has reported, with the company losing another $1.6 billion in October 2025 for similar reasons. GM isn't the only brand suffering losses during this shift, either. Ford's CEO recently went on record saying that the EV market will be "way smaller than we thought," and the brand reported that its plan to shift its EV strategy will cost $19.5 billion. Meanwhile, Stellantis is discontinuing the Jeep Wrangler 4xe plug-in hybrid and plans to revive some other gas-powered models instead. Ultimately, General Motors and other brands have to focus their efforts on making and selling cars that drivers actually want to buy.

The future of EVs may be uncertain, but the good news is that if you still want to buy an electric vehicle from General Motors, the lineup isn't going away. Models like the Cadillac Vistiq and GMC Sierra EV are both still offered for the 2026 model year. And, if you're willing to wait a little bit, the Chevy Bolt is coming back.