GM’s EV push will cost it $1.6 billion in Q3 with end of the tax credit

General Motors (GM) is expected to incur a $1.6 billion charge in the third quarter due to the end of the federal tax credit for electric vehicle (EV) buyers. This comes as the company is ramping up its EV production, but faces a predicted decline in EV demand. To address the changing market dynamics, GM has adjusted its production plans. The company is now focusing on building more high-profit pickup trucks and SUVs, while scaling back its EV production temporarily. This move is a response to the expiration of the federal tax credit, which had previously provided a $7,500 incentive for EV buyers. With the credit no longer available, GM anticipates a significant drop in EV demand, leading to the need for the $1.6 billion charge. The article highlights the challenges GM faces as it navigates the transition to electric vehicles amidst shifting market conditions and the end of government incentives. The company's strategy aims to balance its EV ambitions with the realities of the current market landscape.