GM's EV U-Turn: A $6 Billion Lesson

General Motors is facing a huge financial setback. They just announced a $6 billion loss. This is because they are slowing down their electric vehicle (EV) plans. It's not the first time they've taken a hit. Back in October, they already reported a $1. 6 billion loss for the same reason. This change comes after the Trump administration rolled back policies that supported EVs. These policies were meant to encourage people to switch to zero-emission vehicles. Automakers like GM had invested a lot in EVs, expecting strict environmental rules. They also thought states would follow California's lead and ban gas-powered cars soon. But now, the rules aren't as strict. Plus, the financial support for EVs has been reduced. Even so, EVs aren't disappearing. They are still popular in the US and even more so in other countries.Most of GM's $6 billion loss will go to settling contracts with parts suppliers they no longer need. This isn't the only automaker struggling. Ford also announced a $19. 5 billion loss due to changes in their EV plans. GM hasn't said they're stopping any specific EV models or closing factories. But they did announce layoffs. In October, they cut one shift at their Factory Zero EV plant in Detroit. This put 1, 200 workers on indefinite layoff. They also laid off 550 workers at an EV battery plant in Ohio. EV sales spiked earlier in the year. This was due to a $7, 500 tax credit expiring. But in the fourth quarter, sales dropped. They were lower than the previous year and the record-breaking third quarter. GM's CEO, Mary Barra, said EVs are still important. But she admitted that traditional gas-powered vehicles will be around longer than expected. This shows that the future of EVs is uncertain. It's a big change from GM's earlier goal to sell only EVs by 2035.