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The electric vehicle market in the U.S. recorded a dynamic surge in 2025, with buyers rushing to take advantage of government incentives. Despite this, the headlines of growth lie a sobering reality: the EV industry remains fragile, and recent developments from General Motors (GM) illustrate just how precarious the sector’s position is.

 

U.S. EV Sales: Growth on the Surface

According to Cox Automotive, U.S. EV sales have steadily increased during the past few years:

2025 (through September): Over 1 million units, 10.5% market share

2024: 1.3 million units, 8.1% market share

2023: 1.2 million units, 7.8% market share

2022: 800,000 units, 5.8% market share

While these figures are encouraging, the in-depth analysis of these figures reveals that only a few models dominate the market.

 

 

EV Sales Are Highly Concentrated

During the third quarter of 2025, 90 types of different EV models were purchased, of which only the manufacturers of nine models succeeded in selling more than 10 k units. Tesla’s Model Y and Model 3 were clear outliers, moving 114,000 and 53,000 units, respectively, while the Chevy Equinox barely crossed 25,000 units. According to reports, fewer than 2,000 EVs are sold per month—or roughly 6,000 per quarter. In an industry driven by volume, low sales numbers make profitability elusive. Cox Automotive noted, “EV profitability remains a distant dream for nearly every automaker.”

 

GM to Absorb $1.6 Billion in Losses

The recent amendments in the U.S. government’s EV policy have further developed an additional layer of uncertainty. While 2025 saw a surge in purchases—largely due to the $7,500 tax credit—recent policy shifts under President Donald Trump, including easing emissions standards and limiting states’ authority on environmental regulations, threaten to slow adoption.

 

GM expects to lose billions in EV investments as a result. In an 8-K filing, the company stated, “Following recent U.S. Government policy changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow.” To maintain a balance between production and anticipated demand, GM’s board approved third-quarter charges of $1.6 billion for a “planned strategic realignment of our EV capacity and manufacturing footprint.”

 

$1.2 billion: Non-cash impairment charge related to changing manufacturing capacity

$400 million: Contract cancellations and commercial settlements

GM also warned that additional charges may arise as the reassessment of EV production, battery components, and manufacturing footprint continues. Despite this, current Chevrolet, GMC, and Cadillac EV models will remain available for consumers.

 

A Broader Challenge for the U.S. EV Market

GM is not alone in facing billions in losses. Ford anticipates the loss of more than $5 billion in its electric vehicle division, Model e, in 2025.  Despite strong domestic sales, the U.S. EV market is lagging behind China and Europe. While battery electric vehicle (BEV) market share in the U.S. is on track to exceed 12% for the first time, the scale of sales is still smaller than in other regions:

Largest Regional BEV Sales in 2024 (IEA):

China: 6.4 million units

Europe: 2.2 million units

U.S.: 1.2 million units

Rest of the World: 1 million units

 

The Road Ahead

 

Undoubtedly, the EV market in the US is growing dynamically, but the sector’s profitability and sustainability depend heavily on government support, consumer adoption, and scale economies. GM’s $1.6 billion write-down is a stark reminder that even record-setting sales cannot shield automakers from the risks inherent in the EV revolution.

As other automakers face similar challenges, the question remains: can the U.S. EV market maintain its momentum, or will policy shifts and concentrated sales patterns slow the transition to electric mobility?