GM's EV reset costs $10.9 billion; worst nearly over

General Motors Co. has spent $10.9 billion on its electric-vehicle reset since mid-2025, the company said Tuesday, and executives believe the bulk of the cash costs are behind it.

GM recorded a $2.3 billion EV-related charge in the second quarter, bringing the total to $10.9 billion. The write-downs cover reduced battery capacity and factory retooling for gas-powered vehicles, the automaker said. U.S. demand for EVs slumped after the federal $7,500 tax credit expired in September, and legacy automakers have responded with massive charges. Stellantis N.V. took a $26 billion charge in February. Ford Motor Co. recorded a $19.5 billion charge in December. Volkswagen AG wrote off $3.5 billion in September.

GM's most recent charge has "substantially" completed the major cash outlays expected from the EV reset, executives said on the earnings call. The company builds nine EV nameplates, the largest lineup of any U.S. automaker. That scale contrasts sharply with CEO Mary Barra's 2021 prediction that GM would sell more electric vehicles than Tesla Inc. by 2025.

Last year GM sold just over 150,000 EVs. Tesla delivered nearly 590,000.

Gas-powered trucks and SUVs remain GM's primary profit engine, and the product mix is shifting. In the second quarter, GM shipped 31,000 fewer EVs to North American dealerships than a year earlier. It shipped 30,000 more gas-powered vehicles over the same period. The shift reaches even Cadillac, which calls itself America's best-selling luxury EV maker. Cadillac is developing new internal combustion engine cars.

"Starting next spring and continuing into 2028, we will begin launching the next generation of Cadillac ICE vehicles," Barra said on the call.

GM's stock rose more than 3% in after-hours trading. The company's GM stock page shows an Alpha Score of 60 out of 100, rated Moderate, in the Consumer Discretionary sector.