GM Hits Speed Bump in Electric Vehicle Push: $7 Billion Charge Takes Toll on Net Income. In a move that signals a shift in the automaker's electric vehicle (EV) production strategy, General Motors has taken a massive $7 billion hit in charges, significantly reducing its net income. The hefty charge, which is a non-cash expense, reflects the company's decision to scale back production of certain EV models, a move that has left investors and analysts wondering if the industry's most ambitious EV plans are still on track. As the global EV market continues to evolve and mature, GM's adjustment suggests that the company is re-evaluating its production strategy to better align with market demand and stay competitive.
General Motors took more than $7 billion in charges related to scaling back electric vehicle production, reducing net income.