GM will take a $1.6 billion hit as it predicts a drop in EV demand. Here's the latest setback.

Core Viewpoint - GM's stock is declining due to the expiration of a significant tax credit, which will necessitate a reduction in the company's electric vehicle (EV) investment plans [1] Group 1: Company Impact - The end of the critical tax credit is expected to adversely affect GM's financial strategy and future growth in the EV sector [1] - The company may need to reassess its investment priorities and scale back on planned EV projects as a result of the tax credit expiration [1] Group 2: Industry Implications - The expiration of tax credits could have broader implications for the automotive industry, particularly for companies heavily invested in EV technology [1] - Other automakers may also face similar challenges in maintaining their EV investment momentum without the support of tax incentives [1]