Legacy automaker General Motors (GM) has extended downtime at its Factory ZERO EV plant in Detroit, temporarily laying off about 1,300 workers until April 13. This builds on a pause that began March 16 amid sluggish EV sales. A GM spokesperson explained, “Factory ZERO will temporarily adjust production to align EV production with market demand… Impacted employees may be eligible for sub pay and benefits in accordance with the GM-UAW national contract.”
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GM’s move reflects wider industry struggles with EV demand, which has cooled since 2024 peaks due to high prices and charging concerns. Factory ZERO builds high-profile models like the Chevrolet Silverado EV and GMC Hummer EV. Both are facing slower-than-expected uptake despite initial hype.
GM Scales Back EV Investments
GM has recorded $7.6 billion in losses on its EV programs. Like peers, it is cutting back EV plans after new U.S. rules under President Donald Trump, especially the ending of the $7,500 EV tax credit in September 2025. GM has pulled back on EVs before, like canceling the BrightDrop electric delivery vans, switching a Lansing plant to build gas-powered Cadillac CT5 sedans instead of EVs, and dropping plans for EV parts at a Toledo transmission plant.
Factory ZERO has seen prior cuts, including 1,200 jobs in late 2025, over 1,100 in early 2026, and a 50% output reduction in January. These steps reflect a pattern of scaling back ambitious EV goals set years ago.
Shift Toward Gas-Powered Cars
The auto industry has strategically shifted focus to gas-powered trucks and SUVs, which generate most of the profits in Detroit. GM also stated that it will boost heavy-duty truck production at a Michigan plant starting in June. Rival Ford Motor (F) is also ramping up production of gas-powered pickups.
Choosing the best mix of electric and gas-powered vehicles is getting harder, as a war in the Middle East has pushed up gas prices. EV demand has become unpredictable since no one knows how long the war will last or what it will do to gas prices long-term.
Is GM Rated Buy, Hold, or Sell?
On TipRanks, GM has a Moderate Buy consensus rating based on 15 Buys, three Holds, and one Sell rating. The average General Motors price target of $95.50 implies 31.3% upside potential from current levels. Year-to-date, GM shares have fallen 10.3%.
