General Motors is still paying a very high price for betting big on EVs.
The automaker just revealed it took another $1.1 billion hit tied to electric vehicles during the first quarter of 2026, and that comes after an even uglier second half of 2025.
During that period alone, GM reported a staggering $7.6 billion in EV-related charges.
That brings the company’s recent EV pain to nearly $8.7 billion.
What’s Causing The Losses?
According to GM CFO Paul Jacobson, the latest losses stem largely from supplier contracts that no longer make sense.
GM previously committed to larger EV production volumes, but that demand didn’t fully materialize.
Now the company is paying suppliers after canceling or scaling back agreements tied to those earlier projections.
Jacobson said GM has already accounted for roughly 90% of those expected supplier claims.
GM Bet Big On EV Growth
Like several legacy automakers, General Motors aggressively shifted factory capacity toward EV production.
That strategy looked smart when EV growth was surging.
Then the market cooled, consumer adoption slowed, interest rates climbed, and many buyers started leaning back toward hybrids instead of fully electric vehicles.
GM Still Has Financial Buffers
The good news for GM? Its broader business remains profitable.
The company reported:
- A sixth straight profitable quarter in China
- Growing subscription revenue
- $400 million saved on warranty costs
- Rising EV market share in the U.S.
- GM says its U.S. EV market share climbed from 10% to 13% during Q1.
That’s meaningful progress, even if profitability remains difficult.
Electric Trucks Were Also Hit
General Motors recently scaled back plans for future electric trucks as well.
That’s another sign the company is adjusting expectations to match actual consumer demand.
This Isn’t Just A GM Problem
Other major automakers are dealing with similar issues.
Ford Motor Company and Volkswagen are also facing pressure from slower-than-expected EV growth.
GM still has highly profitable gas-powered trucks and SUVs, helping offset those losses.
The EV Transition Is Getting More Expensive
This doesn’t mean EVs are failing, it means automakers badly misjudged how quickly consumers would transition.
The companies that survive this period will likely be the ones flexible enough to sell:
- Gas vehicles
- Hybrids
- Plug-in hybrids
- EVs
General Motors is learning that lesson the expensive way.