Week of October 20, 2025
Last week, General Motors (GM) announced a $1.6 billion charge related to its underperforming electric vehicle (EV) line, citing reduced government subsidies as a key factor. As noted in theWall Street Journalarticle “The Rest of the World is Following America’s Retreat on EVs,” other countries are also scaling back their EV targets. The common thread: governments set ambitious mandates that outpaced both industry capabilities and consumer demand. In a free market, companies that prioritize the consumer over regulatory targets are more likely to succeed—ignoring this reality can prove to be a costly mistake. Our Signals remain unchanged.
Genadi Slavov, CFA, and Bob Bilkie, CFA
