DETROIT, Jan 10, 2026, 13:02 ET — Market closed
- GM dropped 2.7% on Friday following the announcement of a $6 billion EV-related charge linked to scaling back certain investments
- The company revealed that the bulk of the charge—a $4.2 billion cash hit—stems from supplier settlements and canceled projects
- Upcoming catalysts: U.S. CPI on Jan. 13 and GM’s quarterly earnings on Jan. 27
General Motors shares dropped 2.7% to close at $82.87 on Friday, following the company’s announcement of a $6 billion charge related to cutting back some of its electric-vehicle investments. Ford shares slipped 1.3%, but Tesla gained 2.1%.
The selloff highlights that EV investment is shifting from a land-grab race to a battle over cash and margins. As U.S. policy changes tighten incentives and demand cools, investors are demanding clearer numbers from automakers on what projects will move forward, which will be canceled, and who will cover the costs of parts already purchased.
GM revealed in a Thursday filing it will take a $6 billion charge to unwind some of its EV investments after scaling back planned production. The bulk of that—$4.2 billion—is a cash hit tied to canceled supplier contracts and settlements. The automaker plans to record this as a special item in its fourth-quarter earnings, alongside a $1.1 billion charge linked to restructuring its China joint venture. It also flagged further supplier-related charges in 2026, though these are expected to be smaller than in 2025. By comparison, Ford reported a $19.5 billion EV writedown last December. GM stressed this won’t impact its U.S. lineup of about a dozen EV models but noted a 43% drop in EV sales during Q4 after the $7,500 federal tax credit expired on September 30. CFRA analyst Garrett Nelson pointed out that GM’s “lack of hybrid exposure” might “partially reverse recent market share gains.” 1
A write-down cuts the reported value of assets on the books. For GM, it’s not just accounting—this hits the cash flow too, as significant payments head out to suppliers.
Traders are left wondering if the company has finished untangling its supply chain issues or if the process is still underway. Negotiations with suppliers often take time and can push back when charges hit the books and cash flows out.
Macro factors play a big role in autos since most buyers rely on financing. The upcoming U.S. consumer price index report, set for Tuesday, Jan. 13, could shift interest-rate forecasts—and with them, how affordable cars really are. 2
GM will release its fourth-quarter and full-year 2025 earnings on Tuesday, Jan. 27, with results due around 6:30 a.m. ET. A conference call is scheduled for later that morning. Investors will be watching for updated production and profit forecasts, along with any new commentary on EV demand. 3
The Federal Reserve’s upcoming policy meeting is set for Jan. 27-28, creating another possible volatility spike right around the time GM releases its earnings. 4
There’s a clear risk here. Should EV demand remain sluggish without the tax credit, automakers might be forced to slash factory schedules further, potentially triggering more supplier settlements. If the industry pivots more quickly toward hybrids—vehicles combining a gasoline engine with a battery—GM could face tough questions about why it bet more heavily on full EVs than its competitors.
Investors are now focused on Tuesday’s inflation data, followed by GM’s earnings report and outlook on Jan. 27. The company will need to clarify how much progress it’s made on its EV reset by then.
