GM Expects $1.6B Earnings Blow as EV Tax Credits Expire
General Motors anticipates a $1.6 billion earnings hit for the third quarter due to slowing demand for electric vehicles after the expiration of federal tax credits.
The company expects to absorb a $1.2 billion accounting charge for adjustments to EV production capacity and $400 million for canceling supplier contracts tied to EV investments.
Federal EV tax credits worth up to $7,500 for new EVs and $4,000 for used vehicles expired on September 30.
The expiration of tax credits is expected to impact sales, prompting GM to reassess its EV production capacity and investments.
Author's summary: GM faces a $1.6 billion earnings hit due to expired EV tax credits.