EV Buyers Lose $7,500 Credit This Month, GM Slows Production

With the federal $7,500 tax credit ending soon, GM is pulling back on EV production, expecting slower sales and a bumpier road ahead for electric cars.

Big news for the drivers who are considering an electric car: the $7,500 federal EV tax credit officially ends this month, and GM has planned to take no chances. The automobile company has confirmed it will slow down the pace of production of several of its electric models, expecting demand to cool once the incentive disappears.

There will be a pause in the production of models like the Cadillac Lyriq and Vistiq in October, November, and December. On top of that, GM has planned to cut its plans to increase the production of the Chevrolet Bolt EV later this year.

The Kansas City plant, where Bolt production is ready to start, won’t be adding any extra shifts as originally planned. It is also expected that some workers will face temporary layoffs heading into 2026.

Duncan Aldred, GM’s North America chief, has elaborated on the company’s decision in a recent statement. He said, “We’re expecting strong demand once again in September. The question, of course, is what’s next? There’s no doubt we’ll see lower EV sales next quarter after tax credits end September 30, and it may take several months for the market to normalize. We will almost certainly see a smaller EV market for a while, and we won’t overproduce. Still, we believe GM can continue to grow EV market share.”

The end of this credit is, undoubtedly, a big deal. It has been among the key reasons buyers were planning to purchase EVs despite higher sticker prices. Without it, experts believe that many buyers may postpone their plan of buying EVs, at least for now.