General Motors Posts $390M Trade Volume Ranks 265th as EV Subsidy Expiry Threatens 50% Sales Drop

On September 3, 2025, General Motors (GM) closed with a 1.33% decline, trading on a volume of $0.39 billion, ranking 265th in market activity. The stock’s performance aligns with broader concerns over the U.S. electric vehicle (EV) sector as federal tax incentives set to expire on September 30 threaten to reduce sales by up to 50%. Analysts warn that the expiration could push GM’s EV market share below 4%, down from the current 9.1%, with stabilization expected by early 2026. The company has acknowledged a likely near-term sales drop but emphasized long-term confidence in its EV strategy.

GM has adopted aggressive pricing strategies to mitigate the impact of lost subsidies, including a $7,500 discount on its Bolt EV following previous tax credit limits. The automaker reported record EV sales in August, exceeding 21,000 units across Chevrolet, Cadillac, and GMC brands, but expects a post-expiration decline in the next quarter. Management highlighted its diversified portfolio, including affordable models like the Equinox EV and luxury offerings, as a competitive edge amid industry challenges. The company also noted reduced overproduction and irrational discounts from less-established competitors, which could benefit GM’s market position.

Despite short-term volatility, GM remains focused on maintaining and expanding its EV market share. The automaker’s August performance reflects strong consumer demand driven by pre-deadline purchases, but analysts caution that post-September sales will face headwinds. The IRS has extended tax credit eligibility for contracts signed by September 30, offering temporary relief for buyers. However, inventory depletion and regulatory shifts, such as the removal of EV production penalties, may complicate the sector’s recovery trajectory.

GM’s August EV sales reached a monthly record of over 21,000 units, with management projecting sustained demand in September. The company anticipates a sales slowdown post-expiration but believes its product lineup and customer loyalty will support long-term growth. Analysts note that competitors may adopt price cuts to offset lost subsidies, a strategy GM has previously employed. The automaker’s confidence stems from its industry-leading EV portfolio and strategic alignment with market trends, despite near-term uncertainties.