General Motors’ 2025 EV Sales: A Year of Highs and Lows
Key Highlights:
- General Motors achieved record-breaking annual EV sales in 2025, securing its position as the second-largest electric vehicle seller in the U.S. behind Tesla.
- Despite the yearly success, fourth-quarter sales plummeted dramatically due to expiring federal tax credits and shifting market conditions.
- The downturn affected all GM EV models, with luxury and crossover segments hit hardest.
A Strong Year Overshadowed by Q4 Struggles
2025 marked a milestone for GM’s electric vehicle ambitions. The automaker reported robust annual sales, buoyed by growing consumer interest and a diverse lineup of affordable EVs. However, the celebratory tone faded as the year closed. Fourth-quarter sales plunged by 43% year-over-year, far exceeding industry forecasts.
The abrupt drop followed the discontinuation of federal EV tax incentives, which had previously spurred demand. Models like the Cadillac Lyriq saw sales crash by over 45%, while the Chevy Blazer EV nosedived nearly 80% compared to 2024.
Behind the Slowdown
GM had anticipated a cooling market but underestimated the speed and severity of the decline. In a Q3 shareholder letter, the company acknowledged that EV adoption would slow and announced plans to adjust production to mitigate losses in 2026.
Several factors contributed to the slump:
- Regulatory changes: Expiring tax credits removed a key incentive for buyers.
- Economic pressures: High interest rates made financing less attractive.
- Consumer behavior: Many buyers accelerated purchases in Q3 to capitalize on expiring benefits, creating a demand vacuum in Q4.
Lessons from the Market
GM’s experience mirrored broader industry trends. While crossover and luxury EVs initially gained traction, full-size electric trucks struggled to convert buyers—a challenge also faced by competitors like Ford.
The automaker emphasized that its strategy remains intact. Early adopters drove 2025’s growth, but mainstream buyers now require stronger value propositions without government subsidies.
Looking Ahead
2025 demonstrated that GM can produce EVs at scale, but sustaining demand without incentives poses the next hurdle. As the market adjusts, GM’s ability to balance production with evolving consumer preferences will determine its long-term success in the electric era.
