GM Faces $1.6B Earnings Blow as EV Tax Credits Expire
General Motors expects to take a $1.6 billion earnings hit for the third quarter due to slowing demand for electric vehicles.
The company will 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.
GM estimates the impact on sales, citing the expiration of tax credits as the main reason.
Author's summary: GM expects a $1.6B earnings hit.