Just two years ago, General Motors CEO Mary Barra confidently stated, “We believe in an all-electric future.” She insisted the hurdles GM faces in the electric vehicle (EV) sector are merely temporary setbacks in the quest for net-zero emissions. However, things seem to have taken a different turn.
On January 8, GM reported a staggering $7.1 billion hit to its profits, with $6 billion stemming specifically from the shortcomings of Barra’s EV strategy. An SEC filing cautioned of further write-downs this year as part of a “strategic realignment of EV production capacity.”
Over three years, GM managed to produce 5.4 million EVs, but at an astonishing loss of nearly $20,887 for each vehicle.
This announcement followed closely on the heels of Ford Motor Co.’s disclosure of a $19.5 billion write-down related to its EV division. Ford has amassed a shocking $35.1 billion in losses from its EV ventures, raising eyebrows about why Ford CEO Jim Farley has remained in his position. Despite the major setbacks, Farley still received $24.9 million in compensation for 2024.
Decline in Sales
Yes, global EV sales are indeed on the rise. About 20.7 million electric vehicles were sold last year, marking a 20% increase from 2024. Still, it’s somewhat misleading since nearly two-thirds of these sales occurred in China. Specifically, China sold 12.9 million and Europe 4.3 million, while North America contributed only 1.8 million, making up just 9% of the total. Moreover, EV sales in the U.S. edged up a mere 1% in 2025, and in Canada, there was a drastic 41% decline.
On the other hand, pure-play EV maker Tesla experienced a tough year in 2025, with sales dropping by 9%. CNBC referred to this as a “stunning reversal” for Elon Musk and the company.
Rivian faced challenges too, delivering 42,247 units in 2025—a decline of 18% from 51,579 units the previous year. The sharpest decline happened in the fourth quarter, largely due to the expiration of the $7,500 tax credit at the end of September. To add to the woes, Kia Motors’ EV sales plummeted by 50% just in December.
Porsche had lofty ambitions stating that half of its sales would be fully electric or hybrid by 2025, aiming for over 80% of profits from fully electric vehicles by 2030. Yet, reality hit hard last October when the company reported a $1.1 billion loss in the third quarter. They acknowledged this reflected costs due to pivoting back to gasoline-powered cars, citing weak demand for EVs. Earlier this month, Porsche admitted to losing $1.9 billion on its EV ventures, with failures particularly noted in the U.S. and China, forcing them to cancel or adjust several EV plans.
My colleagues and I examined seven major companies, which included the big three U.S. automakers—GM, Ford, and Stellantis—as well as European leaders Mercedes and Volkswagen. We excluded Tesla from the analysis due to its unique profit structure, which is inflated by selling regulatory credits. We also included Rivian and Lucid as they are exclusively EV manufacturers, allowing us to compare their results with those of traditional firms.
$114 Billion Loss
How much have automakers truly lost on EVs, and what are their sales figures over recent years? Our analysis draws on company data and our attempts to find accurate information about EV revenues and losses.
For firms such as Ford, Lucid, and Rivian, loss figures stem directly from their SEC filings. For GM, Stellantis, Mercedes, and Volkswagen, we relied on conservative estimates based on various financial indicators since they don’t disclose EV data. It’s worth noting that only Ford reports specifically on EV finances.
In total, the losses for these seven automakers near $114 billion. We estimate that from 2022 through the third quarter of 2025, legacy automakers collectively lost around $83.6 billion in their EV operations, while Lucid and Rivian jointly incurred losses close to $30.2 billion.
After 16 years and a whopping $114 billion down the drain, one has to wonder about the wisdom behind this EV push.
Moreover, European manufacturers don’t provide segmented EV data, complicating attempts to gauge profitability. Still, indications of lower profit margins suggest significant losses ahead. For instance, Mercedes expects EV sales to decline by 23% in 2024 and announced a $5.45 billion cost-cutting initiative. They also projected flat sales for “electrified vehicles” in 2025—a category likely encompassing hybrids.
In an estimate you can’t overlook, these seven automakers produced 5.4 million EVs from 2022 to Q3 2025, with an average loss of $20,887 per vehicle sold.
Aside from financial impacts, thousands of workers have faced layoffs due to restructuring tied to EV initiatives. Ford has reduced its workforce by more than 1,400 at its Rouge Electric Vehicle Center, scaling back operations from three shifts to one. GM has cut over 3,400 jobs across various facilities, including at Orion Assembly, Factory Zero, and the Ultium battery plant. Rivian and Lucid have also adjusted their workforces, stalling factory expansions and warning investors about delayed profitability.
In late 2024, Volkswagen decided to cut 35,000 jobs by 2030, a move tied to the ongoing push for EV production as well as soaring energy costs in Germany. Last October, Mercedes initiated what it termed the largest job cuts in its history, encouraging about 30,000 employees to depart in the coming years.
Stellantis announced plans to lay off 900 employees at its U.S. parts factories in April 2025, citing declining sales and tariffs as contributing factors. Earlier this year, they also revealed a cut of 740 jobs in Poland, stemming from sluggish EV sales in Europe.
Niche Product
Surprisingly, these losses, while significant, aren’t really shocking. The narrative of EVs is one of repeated failures over the last century. Importantly, EVs have historically served as niche products mostly purchased by affluent households.
More than half of U.S. EV owners have annual incomes exceeding $100,000, with a demographic breakdown showing 75% are male and 87% white. In 2009, Johan de Nysschen, former president of Audi of America, joked about the Chevrolet Volt, stating, “No one is going to pay a $15,000 premium for a car that competes with the Corolla.”
He further commented that EVs primarily appeal to “intellectual elites who wish to signal their enlightened status… so there aren’t enough people who would buy it.”
Here we are, 16 years later, with over $114 billion lost, it’s hard to ignore the confusion surrounding the EV landscape.
