GM's EV Bet: Doubling Down Despite $7 Billion in Charges
GM posted $7.1 billion in Q4 charges tied to its EV restructuring — and then went right back to saying EVs are the plan. Cadillac's EV sales surged 69% in 2025. The question is whether scale can arrive before the cash runs out.
General Motors is burning through billions on EVs. And it has no intention of stopping.
The automaker confirmed on October 14, 2025, that it expects to book approximately $7.1 billion in charges in Q4 2025 — primarily to write down the value of EV assets and restructuring costs tied to slowing U.S. EV adoption. The figure, which followed a $6 billion charge announced earlier in the year, is a stark admission that GM’s EV transition is running significantly over budget and behind schedule.
And yet CEO Mary Barra and her leadership team have been unambiguous: EVs remain the long-term plan. “Our north star hasn’t changed,” Barra said at the company’s Q3 earnings call. TheUltium EV architecture, the Cadillac Lyriq, and the upcoming Chevrolet Blazer EV are still the foundation of GM’s future.
The Numbers Tell a Complicated Story
On one hand, GM’s full-year 2025 EV sales in the U.S. rose 48% to approximately 169,887 vehicles — making GM the No. 2 EV seller in America behind Tesla, and ahead of Hyundai, Rivian, and everyone else. Cadillac’s EV lineup grew 69% year-over-year. In Q3 2025, more than 40% of all Cadillacs sold in the U.S. were electric — a figure no other luxury brand in America is close to matching.
On the other hand, the charges are enormous, and the path to profitability in EVs remains unclear. GM’s EV unit is losing money on every vehicle sold — the result of massive upfront investment in battery technology, factory retooling, and the slower-than-expected adoption curve in the U.S. market.
Cadillac Is Doing Something Right
The Lyriq midsize luxury SUV is the clearest proof that GM can build a competitive EV. It offers up to 326 miles of EPA-rated range, a tech-rich interior, and the latest version of Super Cruise hands-free driving. More importantly, it’s selling. The Lyriq was the top-selling electric Cadillac in Q3 2025, and the brand’s expanding portfolio — including the Optiq subcompact and the Vistiq three-row — means Cadillac now has a full lineup of electric vehicles.
The Optiq launched in late 2024 and posted strong numbers in its first full quarter. The Vistiq, a three-row electric SUV aimed at the family luxury segment, started deliveries in Q3. Together with the Lyriq, these three models accounted for roughly 85% of Cadillac’s EV volume in 2025.
The Charging Question
GM’s strategy also depends heavily on access to charging. The company has invested in the Ultium Charge 360 network and has deals with all major third-party charging providers. Cadillac buyers get access to the Cadillaciq app, which integrates route planning and charging stops into the vehicle’s navigation — a Tesla-style experience that is table stakes for any new EV in 2025.
The company is also working to address the cost problem. GM CFO Paul Jacobson said in October that the automaker is targeting a significant reduction in battery costs per kWh by 2026, which would finally bring GM’s EVs to positive gross margin territory. Whether that timeline holds — given the broader market headwinds — is the question Wall Street is watching most closely.
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