American consumers purchased 90 different models of electric vehicles in the third quarter, but only nine sold more than 10,000 units.
The Tesla Model Y and Model 3 were the top sellers, moving more than 114,000 and 53,000 vehicles, respectively, and the Chevy Equinox sold just under 25,000.
But those three models were outliers.
“The vast majority of EVs sell far less than 2,000 units per month or 6,000 units per quarter. In the volume-based auto manufacturing business, low volume is the enemy, EV profitability remains a distant dream for nearly every automaker,” according to Cox Automotive.
With this writing on the wall, OEMs such as General Motors have rethought their EV strategy.
GM’s sprawling Lordstown, Ohio plant is undergoing some major changes.Grillot/Bloomberg via Getty Images” loading=”eager” height=”640″ width=”960″ class=”yf-lglytj loader”/>
GM’s sprawling Lordstown, Ohio plant is undergoing some major changes.Grillot/Bloomberg via Getty Images
General Motors says it and other OEMs will lose billions of dollars in money it invests in electric vehicles as a result of changes in government policy.
“Following recent U.S. government policy changes, including the termination of certain consumer tax incentives for electric vehicle purchases and a reduction in the stringency of emissions regulations, we expect the rate of electric vehicle adoption to slow,” GM said in an 8-K filing in October.
GM is ready to eat billions in taxes to correct its production of electric vehicles.
The company’s board approved third-quarter charges of $1.6 billion in GM North America for a “planned strategic realignment of our electric vehicle capability and manufacturing footprint” that will meet consumer demand.
As a result, General Motors revealed it will lay off more than 1,000 workers at Factory Zero, its all-electric vehicle assembly plant located in the Detroit-Hamtramck, Michigan area.
GM also said it would reduce factory production to a single shift.
But the adaptation of electric vehicle production did not end there. On Monday, Jan. 5, workers at the plant in Lordstown, Ohio, where some of GM’s EV fuel cells are made, received similar bad news.
General Motors no longer operates the assembly plant in Lordstown, Ohio, after selling it in 2019. However, the company still maintains operations at the plant site, including Ultium Cells, which makes batteries for its electrified vehicles.
General Motors sent a letter in October announcing a “mass layoff of hourly GM employees” at the Lordstown plant, scheduled to begin Jan. 5.
Related: Ford and General Motors Get Disturbing Auto Sales News
More than 1,300 employees will be affected, with temporary layoffs for 850 employees. However, hundreds of jobs at the Ultium Cells battery plant in Lordstown are being cut, possibly permanently.
Most of the employees affected by the Lordstown layoffs are battery assembly operators, according to the company. General Motors says it will use the production slowdown and lighter workforce to upgrade the facility.
“Over the past few years, our portfolio and capacity plans have been shaped by the ever-increasing stringency of fuel economy and emissions regulations. To meet these demands, we have aggressively expanded our electric vehicle capacity,” CEO Mary Barra said in the letter.
“However, with the evolving regulatory framework and the end of federal consumer incentives, it is now clear that near-term EV adoption will be lower than planned. That is why we are reassessing our EV manufacturing capacity and footprint…By acting quickly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond,” said Barra6.
According to documents filed with the Ohio Department of Job and Family Services, as seen by local NBC news affiliate WFMJ 21, 1,090 battery assembly operators are being laid off, in addition to 142 quality operators and 102 material operators.
General Motors took a $1.2 billion non-cash impairment charge in the third quarter as it adjusts its manufacturing capacity. The company also took another $400 million in contract cancellation fees and business taxes.
However, that number could increase as GM says its reassessment of electric vehicle capacity, manufacturing footprint and battery component manufacturing is ongoing, “and it is reasonably possible to recognize additional cash and non-cash material costs.”
GM isn’t the only company to lose billions in electric vehicles this year.
Ford says it expects to lose more than $5 billion from its Model e electric vehicle division this year.
For the US, battery electric vehicle (BEV) sales are in the right lane, while China and Europe are in the passing lane, despite a strong year for US EV sales.
According to JD Power, electric vehicles are on track to surpass a 12 percent market share in the U.S. for the first time, after a 2.6 percent year-over-year sales increase.
However, the US market (1.2 million) is still much smaller than that of China (6.4 million) and Europe (2.2 million).
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This story was originally published by TheStreet on January 6, 2026, where it first appeared in the Auto section. Add TheStreet as a favorite source by clicking here.
