On Thursday General Motors said that it will record $7.1bn in one-off charges in Q4 2025, mainly driven by a strategic pullback in the electric-vehicle (EV) segment and a restructuring of its operations in China. Out of the total, $6bn is related to a review of EV investments amid weakening demand, while $1.1bn stems from the reorganization of a Chinese joint venture, including $500m in cash outflows.

In October the automaker had already warned of an initial $1.6bn charge in Q3 relating to these adjustments. Out of the $6bn linked to EVs, about $1.8bn reflects non-cash impairments, and $4.2bn covers contract termination costs and other supplier-related commitments. These items will not affect adjusted results, as GM seeks to separate its operating performance from these exceptional costs.

The announcement comes as major automakers partially step back from an all-electric push. Ford recently said it expects $19.5bn in one-off charges for similar reasons. Despite the adjustments, GM said that it remains confident in the long-term outlook for EVs. However, policy decisions have weighed on the market: the early end of the $7,500 federal tax credit in September 2025, decided by the Trump administration, has slowed commercial momentum. GM still expects charges in 2026, but at a much lower level.

Despite the news, GM shares ended the day up nearly 4% at $85.13. Up over 50% for the year, the stock is posting the best performance amongst major publicly traded automakers. The company's quarterly results will be released on January 27.