GM clings to failed EV plan as buyers and profits vanish

The electric vehicle bubble has burst. Consumers have emphatically rejected EVs as nothing more than a niche car with limited range, minimal utility, terrible resale value, and time-consuming charging hassles.

This consumer rejection began long before President Donald Trump returned to the White House and started repealing Biden-era regulations that essentially instituted a de facto EV mandate. In addition to these critical repeals, Trump’s One Big Beautiful Bill Act just eliminated the $7,500 per unit federal tax credit on each new EV sold in the U.S. effective September 30, 2025.

It’s long overdue for the General Motors’ board to put the EV distraction behind them. If Mary Barra won’t do it, then they need to find a CEO who will.

Other than Tesla, auto manufacturers have been hemorrhaging red ink on their EV ventures — and that was when they could pad the sale of each unit with $7,500 in federal incentives. Legacy automakers have been taking a financial bath on their EV programs. Many are starting to back away from their electric ambitions and pivot back to gasoline-powered vehicles that consumers actually want to buy, including hybrids.

For some manufacturers, however, it may be too late.

GM’s electric obsession

Blaze Media contributor Lauren Fix recently warned on her “Car Coach Reports” podcast that auto manufacturers might not survive the failed “EV transition.”

Yet amidst the carnage of the EV collapse, the CEO of General Motors, Mary Barra, remains unyielding in her commitment to an all-electric future. Sadly, unless GM’s board steps in soon, she may be dragging the entire company over a cliff.

It’s fair to ask at this point, “Who is Barra working for?” She clearly isn’t serving GM’s customers, dealers, or shareholders. Drivers aren’t buying EVs. Dealers can’t sell them. And the EV distraction is dragging down the stock price.

During the Biden administration, Barra pledged to completely purge the GM lineup of gasoline-powered vehicles by 2035. That’s a direct slap in the face to the company’s loyal customer base — especially truck buyers — who overwhelmingly prefer gas engines.

Now that Donald Trump is back in the White House, the Biden-era regulatory hammer that pushed automakers like GM toward EVs is gone. What, then, is motivating Barra to remain steadfast in her EV commitment?

As recently as late May — four months into Trump’s second term — Barra told the Wall Street Journal, “We still believe in an all-EV future. I think EVs are fundamentally better.” She added, “So I see a path to all EV. It will depend on how much we get the infrastructure ready. But I do believe we’ll get there because I think the vehicles are better.”

Unfortunately, outside of their niche as a daily commuter car for those with a charger at home, EVs have barely any utility at all. They are not “better” in any respect than a multi-purpose, gasoline-powered vehicle that can drive anywhere, at any time, for any distance — without charging hassles.

Most consumers know that. GM’s dealers definitely know that.

So, how does GM still have a CEO who doesn’t?

On “Car Coach Reports,” Lauren Fix speculated that Barra’s public EV commitment may not reflect GM’s actual intentions. Maybe she’s just covering for a busted product pipeline — trying to save face while GM begins its years-long pivot toward hybrids behind the scenes. If that’s true, the best-case scenario is that the CEO is lying to shareholders and dealers — it’s a very bad look.

Whether or not Barra is being honest about her intentions for an all-EV future, GM’s website still has a “sustainability” tab which reads, “We aim to achieve an all-electric, zero emissions world while advancing an equitable and inclusive transition to our carbon-neutral future.”

It might as well read: “We’d rather drive off a cliff in the name of a net-zero future than keep building the profitable cars and trucks Americans actually want.”

Investors call Barra’s bluff

Wall Street is finally taking notice — as well it should. When EV hype peaked in June 2021, GM stock was trading around $63 per share at its height. Today, it’s down 15%.

Meanwhile, the S&P 500 is up 50% since June 2021. Put another way: $1,000 in GM stock back then is now worth $850. That same $1,000 in the S&P 500 would be worth $1,500. That’s a 75% gap — and GM investors are the losers.

During a recent earnings call to discuss Q2 2025 results, a Morgan Stanley analyst finally confronted Barra about the elephant in the room: “How does GM expect to be profitable with EVs when players like Tesla apparently cannot?” 

RELATED: Car dealers stuck with unsellable EVs have nobody to blame but themselves

  Photo by UCG / Contributor via Getty Images 

Tesla is facing stiff headwinds with a 13% drop in sales and a 16% drop in profits for Q2. Even with the tax credits still in place, Tesla’s per-unit profit is only around $3,000. But those tax credits are about to vanish with the impending elimination of the $7,500 per unit federal tax credit. Moreover, Tesla is also about to lose another revenue stream: regulatory credits, worth about $1,500 per vehicle, paid to Tesla by non-EV manufacturers to meet emissions rules.