General Motors Wants To Overturn California's EV Mandate As Demand Slows In The US: Report

General Motors Co. GM wants to overturn California's EV policy, which aims to phase out ICE vehicles by 2035.

What Happened: The mandate has already been adopted by 11 other states in the U.S. as the Detroit-based automaker cites slower-than-expected growth in the EV sector, the Wall Street Journal reported on Sunday.

The report suggests the company sent an email to employees, reiterating the automaker's stance on the mandate. "Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability," GM said in the email.

EV sales in the U.S. have declined by over 5% in April as zero-emission vehicles make up over 20% of California's total sales, data cited in the report says. GM has also scaled back its EV production goals as demand declines, the report outlines.

Why It Matters: The news comes in as GM CEO Mary Barra had shared that the company expects a $5 billion hit in costs due to U.S. President Donald Trump's auto tariffs.

The company had also pulled its earnings guidance for 2025, outlining the uncertainty currently faced by the automotive industry. The company recently criticized the Trump administration's trade deal with the UK.

"This hurts American automakers, suppliers, and auto workers," representatives of the company said in a statement.

Elsewhere, House GOP Representatives want to axe the Federal EV credit currently offered as an incentive to drive up EV adoption, casting more uncertainty over the sector.

Price Action: GM Stock gained 0.52% at close and currently trades for $50.37, according to Benzinga Pro data.

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