GM stock falls 2% after $6B EV-related charges announced

Investing.com -- General Motors (NYSE: GM) stock fell 2% in after-hours trading Thursday following the automaker’s disclosure of approximately $6 billion in fourth-quarter charges primarily related to its electric vehicle operations in North America.

The Detroit-based automaker revealed in a regulatory filing that the charges include $1.8 billion in non-cash impairments and $4.2 billion in supplier commercial settlements, contract cancellation fees, and other charges that will impact cash flow when paid. This follows $1.6 billion in EV-related charges GM already recorded in the third quarter of 2025.

GM attributed the significant charges to a reassessment of its EV capacity and manufacturing footprint, citing reduced consumer demand for electric vehicles in North America. The company specifically pointed to the termination of certain consumer tax incentives and reduced emissions regulation stringency as factors contributing to the slowdown.

As part of its strategic realignment, GM has converted its Orion, Michigan assembly plant from EV production to manufacturing full-size SUVs and pickup trucks with internal combustion engines. The company also sold its interest in Ultium Cells LLC’s Lansing, Michigan facility to LG Energy Solution to reduce battery cell capacity.

The automaker expects to recognize additional material charges in 2026 related to ongoing commercial negotiations with suppliers, though it stated these will be "significantly less" than the 2025 EV-related charges. GM also disclosed approximately $1.1 billion in additional non-EV related charges for the fourth quarter, primarily related to restructuring its China joint venture and a legal accrual.

GM noted that the strategic realignment does not affect its current retail portfolio of Chevrolet, GMC, and Cadillac EVs in production.

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