General Motors’s electric vehicle sales continue trending upward
General Motors (GM) announced this week that its electric vehicle (EV) sales reached a new monthly record in August, with the company selling over 21,000 electric cars from Chevrolet, Cadillac, and GMC. In Q2 2025, GM’s profits took a $1.1 billion hit because of President Trump’s tariffs, but the automaker became America’s #2 EV seller behind Tesla during this time. GM’s EV sales more than doubled year-over-year during Q2 at a rate of 111%, or nearly 50,000 units sold. Let’s take a closer look at what’s behind the brand’s recent success.
James Ochoa
Reason #1: GM’s cheaper EVs broadened its reach
While the price gap between gas-powered cars and EVs has been narrowing, the latter group is still more expensive on average, leading many consumers interested in electrification to seek more affordable options. GM has met the public’s demand for cheaper EVs with choices like the Chevrolet Equinox EV, which starts at $33,600 without incentives — a price that’s well below other compact electric SUV options, such as Tesla’s Model Y, which starts $44,990 without the $7,500 federal tax credit. There’s also the midsize Blazer EV, starting at $44,600 without incentives. GM is actively expanding its affordable EV options, with plans to release the redesigned Chevrolet Bolt for the 2027 model year.
Reason #2: GM is investing in a scalable EV platform
In 2020, GM announced its investment in a scalable, flexible, and modular Ultium EV battery architecture platform. This investment enabled diversification of its electric portfolio and acted as a foundational element of the automaker’s segment growth. In July, the company announced a joint venture with LG Energy Solution to upgrade its Spring Hill, Tennessee, battery cell manufacturing facility, aiming to scale production of low-cost lithium-iron-phosphate battery cells. This move was an expansion of GM’s $2.3 billion investment in EVs and autonomous vehicle technology revealed in 2021. GM’s ability to scale low-cost lithium-iron-phosphate battery cell production will accelerate the diversification of the company’s EV portfolio by complementing its high-nickel and future lithium-manganese-rich battery solutions.
Chevrolet
Reason #3: GM’s EVs are now variable profit positive
In 2024, GM achieved positive variable profitability for its EV lineup. In other words, the revenue from its EV sales was higher than the fixed costs for manufacturing labor and materials associated with the segment. This milestone enabled GM to double its EV market share, reflecting the automaker’s ability to make EV production profitable after investing in retooling factories and building new assembly lines for these models.
Final thoughts
While GM has made significant progress in the EV market, it’ll have to weather the storm of the $7,500 federal tax credit expiring on September 30. In a release, GM said that while it expects a smaller EV market after the tax credit’s end, which may take several months to normalize, it remains confident in its ability to grow within the segment. This confidence is rooted in the company’s growing EV portfolio, the country’s expansion of charging infrastructure, and competitors scaling back EV products and plans, which should decrease overproduction and what GM describes as “irrational discounts” in the marketplace, according to its statement.
