Al Root

The electric vehicle slowdown is starting to bite.

On Wednesday, CNBC reported that General Motors will lay off 1,700 workers, citing EV weakness.

GM didn't immediately respond to a request for comment.

Shares were flat in Wednesday trading, while the S&P 500 and Dow Jones Industrial Average were up 0.2% and 0.3%, respectively

Overall EV sales hit a record in September, accounting for 12% of all new U.S. car sales. Buyers were rushing to beat the expiration of the $7,500 EV purchase tax credit, which was eliminated in President Donald Trump's spending bill passed on July 4.

Now, auto makers are preparing for weaker sales. GM recently took $1.6 billion in write-offs, reflecting expectations of lower demand and profitability for its EV business.

The company's EV troubles haven't hurt shares, though. Coming into Wednesday trading, GM stock was up 31% year to date, including a whopping 15% rise after the company reported better-than-expected third-quarter profits on Oct. 21. Tariff-induced cost increases haven't been as bad as feared, and new car demand has held up better than investors expected at the start of 2025.

Write to Al Root at allen.root@dowjones.com

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October 29, 2025 12:14 ET (16:14 GMT)

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