General Motors has been on an aggressive push to carve out a bigger slice of the U.S. electric vehicle market, doubling its EV market share to 12% in the fourth quarter of 2024. With a growing lineup of battery-powered models, GM is proving it can compete beyond Tesla’s dominance. But as political winds shift, the automaker’s EV ambitions could face a major roadblock—former President Donald Trump’s proposed rollback of EV subsidies if he wins the 2024 election.
GM’s EV Surge: A Hard-Earned Victory
GM’s recent success in EV sales isn’t just luck. The company has expanded its electric lineup, offering everything from the affordable Chevrolet Equinox EV to premium models like the Cadillac Lyriq. This broader selection has helped the automaker attract buyers who previously might have stuck with gasoline-powered models.
In 2023, GM tripled Lyriq sales to 28,402 units—outperforming several of Cadillac’s gasoline SUVs. Meanwhile, EV versions of the Chevrolet Equinox and Blazer accounted for 22% and 40%, respectively, of those models’ total fourth-quarter deliveries. By comparison, Tesla continues to dominate with a 44.4% share of the U.S. EV market, but GM is proving that variety matters in winning over customers.
Industry analysts credit GM’s momentum to a mix of competitive pricing, leasing incentives, and the simple fact that its lineup now includes 10 EVs, giving buyers more options than many competitors. Ford and Toyota, by contrast, have leaned into hybrids, a strategy that has paid off as many consumers remain hesitant about full electrification.
The $7,500 Question – Will GM Hold Up Without Subsidies?
One of the key drivers of GM’s recent EV sales has been generous incentives, particularly the $7,500 federal EV tax credit. This subsidy has made EV leases especially attractive, with many GM dealers reporting that over half of their electric vehicle transactions come through leasing.
Trump has made it clear that, if re-elected, he intends to eliminate EV subsidies and could even impose a 25% tariff on vehicles imported from Mexico—where GM builds the Blazer EV and Equinox EV. If these policies take effect, GM will face a serious challenge in maintaining its EV sales growth.
Ivan Drury, director of insights at Edmunds, summed it up bluntly: “We know what happens if you don’t provide it. You don’t sell.”
The potential loss of subsidies puts GM in a difficult position. It could choose to cut EV prices to maintain competitiveness, but that would put even more pressure on profitability, which is already a major concern in the transition to electric vehicles. GM has yet to confirm whether it would lower prices if the tax credits disappear.
GM’s Biggest Hurdle to an EV Future
GM’s long-term vision is an all-electric lineup by 2035, but its biggest moneymaker—full-size trucks and SUVs—remains a major obstacle. While the Silverado EV has finally hit the market, its high price point has made it a slow seller. GM delivered only about 9,000 electric pickups in 2024, compared to nearly 900,000 gas-powered Silverado and Sierra trucks.
The problem is twofold: battery-powered trucks remain expensive, and their towing and payload capabilities still fall short of what traditional truck buyers demand. EV pickups require massive batteries to achieve competitive range, which in turn makes them extremely costly.
GM has plans to expand its electric truck lineup, including more affordable Silverado EV trims in 2025. But the reality is clear: the transition to electric trucks is going to take longer than expected, and GM will need to find ways to maintain its dominance in the highly profitable full-size truck market while making EVs a viable alternative.
Will GM Stick With EVs or Pivot to Hybrids?
Unlike Ford and Toyota, GM has largely resisted the hybrid route, instead betting big on pure EVs. Ford has seen hybrid sales soar—jumping 40% in 2023—while Toyota’s hybrid strategy continues to be a runaway success, with hybrids making up 40% of its U.S. sales.
GM has signaled it will introduce plug-in hybrids by 2027 to meet emissions regulations but has no plans for traditional hybrids. CEO Mary Barra recently dismissed hybrids as an “interim solution,” arguing that GM’s resources are better spent on full EV development rather than dual-powertrain vehicles.
Some analysts, however, believe that GM’s reluctance to embrace hybrids could cost it in the short term. “It would be hard for GM to compete head-on with Toyota in hybrids,” said David Whiston, an automotive stock strategist at Morningstar Research. Still, GM remains confident that full electrification is the future.
2025 is The Year That Could Make or Break GM’s EV Push
With a broader lineup, a more refined production strategy, and strong lease incentives, GM has set itself up for EV success. But 2025 will be the true test of whether its electric ambitions can hold up under new political and market realities.
The upcoming launch of the next-generation Chevy Bolt—a sub-$30,000 EV—could play a crucial role in maintaining momentum. At the same time, if federal incentives disappear and consumer demand shifts back toward hybrids and gas-powered vehicles, GM could find itself in a difficult position.
For now, the automaker remains committed to its all-electric strategy. But with economic uncertainties, political risks, and lingering questions about profitability, the road ahead is anything but smooth.
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