Meanwhile, EV charging infrastructure continues to expand, with Rivian's Adventure Network now over 75% open to all EVs and Ford installing nearly 1,200 chargers across over 320 dealerships, supporting the growing need for accessible charging options.

Despite these infrastructure developments, electric trucks have yet to establish a strong foothold in the market, with electric pickups only making up about 4% of total pickups sold in the U.S. in the first half of 2025.

General Motors is temporarily halting two production shifts at its Factory Zero plant in Detroit-Hamtramck, which employs around 4,000 workers, affecting 160 employees until October 6 as part of a broader effort to align manufacturing with shifting market demand for electric vehicles.

This slowdown at Factory Zero, a key site for GM's EV strategy, reflects a decline in U.S. interest in electric trucks and SUVs, with GM also having previously cut about 200 jobs at the plant in April due to waning demand.

A recent loophole in IRS regulations will allow consumers to claim the Federal EV Tax Credit after September 30, following the end of the previous eligibility period, potentially boosting EV sales.

Despite industry challenges, GM's stock has risen roughly 10% year-to-date and trades at a lower valuation than the industry average, with cautious optimism as the company recalibrates its EV strategy.

The slower EV market growth is partly due to policy changes, including rollbacks of federal incentives and increased tariffs under the Trump administration, which have dampened earlier optimistic forecasts.

Additionally, Ford and Toyota are revising their EV strategies—Ford shifting focus to hybrids and Toyota delaying U.S. EV production until 2028—indicating a broader industry shift towards hybrids and traditional vehicles.

GM's production adjustments, including the temporary layoffs at Factory Zero, are part of standard market alignment and inventory management, with impacted workers potentially eligible for supplemental pay and benefits under the GM-UAW contract.

GM expects to produce between 200,000 and 250,000 EVs in North America in 2025, with profitability anticipated once production reaches 200,000 units, despite recent slower sales.

The company is adjusting its production schedules amid a broader industry trend where electric trucks, despite their luxury appeal, are struggling to gain market share against traditional gas-powered pickups, which still dominate the segment.

Other automakers like Ford are also scaling back EV production, with Ford halting plans for an all-electric SUV in Ontario and reducing operations at its Rouge Electric Vehicle Center, highlighting industry-wide challenges.

Factory Zero, established in 1985, remains a central hub for GM's EV lineup, producing models like the Chevrolet Silverado EV, GMC Sierra Denali, Cadillac Escalade IQ, and Hummer EV, employing around 4,000 workers.