Overview

• General Motors has formally moved to overturn California's mandate to phase out internal combustion vehicles by 2035, which has been adopted by 11 other states.
• The company argues that stringent emissions standards threaten consumer choice and vehicle affordability as U.S. EV sales fell over 5% in April 2025.
• GM has scaled back its EV production goals and withdrawn its 2025 earnings guidance, citing market uncertainty and declining demand.
• The automaker also faces a projected $5 billion cost from Trump-era tariffs, adding to its financial pressures in the shifting automotive landscape.
• House GOP legislators are simultaneously seeking to eliminate federal EV tax credits, intensifying the political and regulatory challenges for the industry.