General Motors 0.69% Rally Navigates EV Production Cuts 322nd in Activity

On September 4, 2025, General Motors (GM) closed with a 0.69% gain, trading on a $0.34 billion volume, ranking 322nd in market activity. The stock's modest rise followed strategic production adjustments at key electric vehicle (EV) facilities, reflecting broader industry challenges in the U.S. market.

GM announced temporary production cuts for two Cadillac EV models at its Spring Hill, Tennessee plant, including the Lyriq and Vistiq SUVs, during December and the first half of 2026. The company will temporarily reduce workforce shifts and shutter the plant for one week in October and November. Additionally, the Kansas City assembly plant, set to produce the Chevy Bolt EV later this year, will indefinitely delay its second production shift. These moves align with GM's strategy to adapt to slower EV industry growth and evolving customer demand, as outlined in internal communications.

The adjustments come amid shifting regulatory dynamics. The Trump administration’s July tax and spending law eliminated a $7,500 consumer tax credit for EVs, a key driver of demand, and froze penalties for automakers failing to meet fuel efficiency standards. Analysts note these changes may incentivize automakers to prioritize internal combustion engine (ICE) vehicles over electrics. GM executives emphasized their ICE portfolio as a competitive advantage, with North America head Duncan Aldred highlighting flexibility and profitability in a market where most EV programs remain unprofitable.

Despite production cuts, GM reported its best-ever EV sales in August, with 21,000 battery-powered vehicles sold across brands. However, executives acknowledged ongoing challenges, including manufacturing hurdles and unmet sales forecasts from earlier years. The company’s strategic pivot underscores the sector’s recalibration as federal support for EVs wanes and global competition intensifies.

Backtests indicate GM’s stock performance aligns with its production and strategic adjustments, reflecting market confidence in its ICE capabilities and long-term EV roadmap. The company’s August sales record and production flexibility are seen as critical factors in maintaining investor stability amid sector-wide uncertainties.