GM will record a negative impact of $1.6 billion next quarter after tax incentives for electric vehicles Cut by the United States And the governing rules Emissions are mitigated.
Shares fell 3% before the opening bell on Tuesday.
the Tax credit for electric vehicles It ended last month. The clean vehicle tax credit was $7,500 for new electric vehicles and up to $4,000 for used vehicles.
GM, which has led the way among U.S. automakers with plans to shift production to a fleet of electric vehicles, said in a regulatory filing on Tuesday that it will have to book charges including non-cash impairment and other charges worth $1.2 billion due to EV capacity modifications. There are also $400 million in charges mostly related to contract cancellation fees and trade settlements associated with electric vehicle-related investments.
GM warned that it could take additional hits as it adjusts production, with non-cash charges potentially impacting operations and cash flow in the future.
The company said the realignment of its electric vehicle capacity does not impact its retail portfolio of Chevrolet, GMC and Cadillac electric vehicles currently in production, and that it expects these models to remain available to consumers.