Core Insights - General Motors is facing significant challenges in its electric vehicle (EV) business, leading to substantial financial charges and a strategic realignment of its EV capacity and manufacturing footprint to better align with consumer demand [1][3]. Financial Impact - In the third quarter, GM reported a charge of $1.6 billion related to its EV operations, which included a non-cash impairment charge of $1.2 billion and $400 million in contract cancellations and commercial settlement fees [2][8]. - The company has indicated that the total charge could escalate, with a projected $6 billion charge for the fourth quarter, which includes approximately $1.8 billion in non-cash charges and $4.2 billion in cash charges as it reduces production due to declining U.S. demand for EVs [3][8][9]. Market Position - As of mid-2024, GM is the second-best-selling EV maker in the U.S., following Tesla, with sales figures showing a gradual increase in market share from 5.8% in 2022 to 10.5% projected for 2025 [4][6]. - The company's EV sales in the U.S. reached 67,000 units, contributing to a market share of 17% [7]. Industry Trends - The U.S. EV market is experiencing a downturn, particularly after the expiration of a $7,500 tax credit, which has led to a sharp decline in sales in October [10]. - Overall EV market share has decreased to 16.5%, with dealer inventory down 16% year-over-year and EV inventory down 30% since June [11].