The path to mainstream electrification is all but inevitable. Despite that, many lawmakers are trying to slow it down. Add to that one of the automakers building thousands of EVs every year, General Motors. A newly uncovered email exposes the company as it urges employees to get political. It hopes that with enough support, the government will stop California from setting its own emission standards.

More: New Bill To Kill EV Tax Credits Will Only Benefit One Brand

The Golden State has long done exactly that. In 2022, it went as far as to tell automakers that they had a little over a decade. By 2035, it won’t allow the sale of new gas-powered cars and trucks. While that would seemingly be good for EV sales, the plan has several critics aside from General Motors.

The Golden State vs. Detroit

“We need your help!” GM said in an email to white-collar employees obtained by The Wall Street Journal. “Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability.” It’s worth noting that California isn’t alone in its thinking. 11 other states have signed up to follow the same plan. Now, GM and several lawmakers want to remove California’s ability to set its own standards and thus, cancel the ability for the other states involved.

In a statement, GM’s spokeswoman made the company’s stance clear: “GM believes in customer choice, and we continue to focus on offering the best and broadest portfolio of vehicles on the market”. That’s consistent with the automaker’s view, even when it supported California’s proposal in the past. Clearly, a national standard is in the best interest of automakers since they wouldn’t have to manage different regulations in different states.

Government officials say the standards set in California are simply out of touch with reality. Data seems to back that up, too. It set a target to have 35 percent of all vehicle sales be electric in 2026. Right now, EVs only make up 20 percent of new car sales, and that’s in a place where EVs are wildly popular when compared to other states.

EV sales in North America are slower than in most places across the globe. The transition to electrification appears like a sure thing, but probably further down the road than initially expected. 

GM’s interest in hydrogen fuel cell technology may seem like a recent endeavor following their work with Honda, but the American automaker has been tinkering with the stuff since the 1960s. While NASA was busy figuring out how fuel cells could help them conquer the space race, GM was busy figuring out how to make hydrogen work on Earth.

Related: GM’s Electrovair Is The Precursor To The Company’s Electric Future

Batteries of the time didn’t have the beans to power the Apollo command module’s communications, drinking water, lighting, and air conditioning systems, so NASA turned to fuel cells, which turn hydrogen into electricity.

And at the same time, GM, having already created two purely battery-powered EVs in the form of a pair of converted Corvairs, Electrovair I and II, was looking to explore the possibilities for hydrogen power back on Earth.

A Fuel Cell System Too Big for the Job

The fuel cell it created with the help of Union Carbide was so massive there was no way it was going to fit into a Corvair, so GM switched to the Handi-Bus, a passenger version of its Handi-Van and a VW Type 2 bus and Ford E-series rival. Even then, the powertrain’s bulk turned the van into a two-seater.

The system, which combines hydrogen and oxygen in an electrochemical reaction that produces water, heat, and electricity, wasn’t only big due its large hydrogen and oxygen tanks, but heavy, too. A total curb weight of 7,100 lbs (3,220 kg) makes most modern EVs – GMC Hummer EV aside – look like lightweights, and 3,900 lbs (1,770 kg) of that was down to the fuel cell equipment.

Predictably, performance was abysmal, zero to 60 mph (96 km/h) taking around 30 seconds, though to to fair ,a stock Handi-Bus with the base 90 hp (91 PS) 2.5-liter four was no fireball either. GM reckoned the range was around 150 miles (240 km) but never tested that on the public road due to safety concerns that turned out to be well-founded. During one test an external fuel tank exploded, shooting debris a quarter mile (400 m) away.

A Test Project, Not a Production Vehicle

This was a true test-bed project and GM never intended to put the Electrovan into production. But it showed that a fuel-cell vehicle could work and paved the way for more efficient, more compact successors that get their oxygen from the air rather than from space-eating tanks of compressed oxygen.

Almost 60 years later, GM is still committed to both BEV and fuel-cell technology, particularly believing that its Hydrotec fuel cell cubes makes more sense in big commercial vehicles like Komatus’s mining trucks than batteries, which are better suited to lighter passenger cars, trucks and SUVs.

The first-mover advantage is something Tesla continues to capitalize on. It’s been over 20 years since the brand first launched, and no other automaker in the U.S. has even come close to challenging Tesla’s dominance in the EV space. Despite the growing competition, Tesla still holds a commanding market share, which hovers around 45%.

More: House Speaker Says EV Tax Credits Are Likely Finished

However, if House Republicans succeed in their push, the company’s position could be further strengthened, but at a cost to legacy automakers like Ford and GM. The reason? A looming change to the Federal Tax Credit that currently helps all EV makers sell vehicles.

The Current EV Tax Credit System

At the moment, those who buy a new or used EV in America might qualify for one of two credits. New car buyers can qualify for up to $7,500, and used car buyers can get up to $4,000. These credits are in addition to various state incentives, such as the $5,000 credit in Colorado and $3,500 in Massachusetts.

To be eligible, the vehicle must meet certain requirements, such as North American assembly and specific sourcing of battery materials. SUVs and pickups are eligible for the credit if priced under $80,000, while regular cars must be under $55,000. Income limits also apply: individuals making under $150,000 and couples under $300,000 qualify. For leased vehicles, the credit goes to the leasing company, which often (but not always) passes on the savings to customers, contributing to a rise in EV leases.

That might not seem like a huge chunk of change considering the price of some EVs, but in reality, it plays a huge role in sales. For instance, in 2022, before the introduction of the tax credit, 96,000 EVs were leased. By 2023, that number skyrocketed to nearly 600,000. But a recent budget bill released on Monday proposes ending both the new and used car credits, along with several other non-automotive tax incentives.

A Slower EV Adoption Could Hurt Major Automakers

According to a report from the New York Times, Cox Automotive’s Stephanie Valdez Streaty believes that almost a third of car sales in 2030 will be EVs if the credit stays as it is. However, should the government get rid of it, that figure could drop to just 20 percent. Slowing the adoption of EVs wouldn’t just be a potential backsliding for environmentalists, it could hit big automakers like GM and Ford in a big way.

Those brands are still trying to get to the point where their EV businesses are profitable. And their far from it with their numbers. On the other hand, Tesla hit that mark long ago, so while other players will need to sort out new strategies, it can continue to reap the benefits of being the first to market in the way it was.

Other legacy automakers, such as Toyota, Hyundai, and Kia, have made significant investments in U.S.-based EV production, but they too could face a major setback if the bill passes. The removal of these credits would undermine the financial viability of the incentives that made their business cases profitable.

EV Startups Face Even Greater Financial Pressure

Although Tesla would also be impacted by the removal of the tax credit, it stands to gain in ways its rivals cannot. While Tesla may be able to withstand lower sales, many of its competitors will not have that luxury and could be forced to shut down. Newcomers like Rivian and Lucid, for example, would face immense financial pressure as their sales figures don’t support a profitable business model.

Even smaller, more recent startups like Slate would likely have to review their entire business plan. What, after all, is the point of a tiny EV trucklet with 150 miles of range, no desirable mainstream features, and a price that is as high as a Ford Maverick?

In the grand scheme, while Tesla will undoubtedly be affected, the long-term payoff could be substantial. It may emerge as the dominant force in the EV market with little to no competition to contend with. In other words, instead of having 45% of the EV market’s 33% of car sales, it could end up with double that of the predicted 20%.

In the grand scheme, Tesla will undoubtedly face challenges, but the long-term payoff could be massive. It might emerge as the dominant force in the EV market with little to no competition to contend with in America. Instead of holding 45% of the EV market’s 33% share of total car sales, Tesla might dominate nearly the entire 20% share that EVs are expected to capture in the 2030s if tax credits vanish, while also further extending its technological lead in the field.

“What this does globally to the U.S. auto industry and its ability to compete – I think it’s going to hurt us,” Ms. Valdez Streaty said. “I think it’s going to slow us down, and we are already behind China.”

General Motors and LG Energy have announced plans to use lithium manganese-rich (LMR) prismatic battery cells in electric trucks and full-size SUVs. The automaker intends to be the first to use LMR batteries and production is slated to begin by 2028.

GM says LMR batteries are a breakthrough as traditional battery cathodes require nickel, manganese, and expensive cobalt. This drives up prices and makes EVs expensive.

More: Stellantis’ Solid-State Battery With 18-Minute Fast Charging Is Almost Ready

LMR batteries seek to address this by using a “higher proportion of more affordable manganese.” They also promise to deliver a “greater capacity and energy density.”

The companies didn’t go into many specifics, but said their new LMR prismatic battery cell has a  33% higher energy density than the best-performing lithium iron phosphate (LFP) cells, despite having a comparable cost.

So what does this all mean? We can expect an electric truck that delivers more than 400 miles (644 km) of range as well as “significant battery pack cost savings compared to today’s high-nickel pack.” That would be a welcome development as the 2025 Chevrolet Silverado EV LT Extended Range starts at $75,195 and has an EPA-estimated range of up to 408 miles (657 km).

GM’s director of advanced battery cell engineering said the batteries are the result of a decade of development. Kushal Narayanaswamy went on to say GM’s current crop of electric trucks and SUVs use NMCA batteries and these have a composition that is roughly 85% nickel, 10% manganese, and 5% cobalt. LMR batteries are vastly different as they’re about 65% manganese, 35% nickel, and use “virtually no cobalt.” In effect, they use more of the cheaper materials and less of the expensive ones.

Chevrolet’s EV lineup is expanding at full throttle, and after introducing electric versions of the Blazer, Equinox, and Silverado, the brand is adding another familiar name to its global roster, and this time, it’s the Captiva. However, before you get too excited, know that this is another one of those “for South America only” deals, so don’t expect it to land on U.S. shores anytime soon, if ever.

The Captiva name was first used in the mid-2000s for a compact SUV sold in certain markets like Europe, Australia, New Zealand, as well as parts of South East Asia, where it was also branded as the Daewoo Winstorm. After the original model was axed, GM revived the Captiva with a new version based on the Baojun 530, a Chinese model. Now, the Captiva has gone full electric, and it’s based on another Chinese offering.

Read: GM’s New Wuling Sunshine Is The Swiss Army Knife Of Chinese EVs

The model in question is the Wuling Starlight S (also known as the Xing Guang S), which is currently sold in China. Recent social media posts from General Motors in Brazil reveal that much of the Wuling’s design has been carried over to the Chevy, though it’s been tweaked just enough to better fit the Bowtie badge.

At the front, the Captiva EV sports narrow LEDs and turn signals, with the main headlamps placed lower down on the fascia. Despite being an electric vehicle, it still has a large black grille, a departure from the grille-free designs we’re used to seeing in more modern EVs. The rear end, however, is almost identical to the Wuling model, with the same taillights, tailgate, and black bumper.

The Captiva EV will be sold in markets like Latin America, the Middle East, and Africa, regions where its compact size and affordability are expected to hit the mark. Needless to say, the US remains firmly out of the picture.

Technical specifications for the new model have yet to be announced. However, we know that the all-electric version of the Starlight S has a claimed driving range of up to 317 miles (510 km) and can reach 62 mph (100 km/h) in 7.7 seconds. Similar specs can be expected for the Captiva EV, including the ability for the battery to be charged from 30-80% in 20 minutes.

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Electric vehicle sales in the United States are gaining ground, but the road to mainstream dominance is still a long one. While EVs made a notable leap forward in the first quarter of 2025, they continue to account for only a fraction of total new car sales. Some automakers rode a wave of growth with new models and fresh demand, while others—Tesla included—faced early-year setbacks.

Read: Tesla’s Q1 Collapse Fueled VW’s Shock Rise In The EV Race

In total, 296,227 electric vehicles were sold nationwide between January and March, marking an 11.4 percent increase over the 265,981 units delivered during the same period last year. New data shows that General Motors had a particularly strong showing, with more than 30,000 GM EVs finding buyers in Q1—nearly doubling its output from a year ago. A mix of fresh offerings from Chevrolet and GMC helped drive the gains, while Cadillac continued to post steady performance.

GM Surges with Chevrolet and GMC

Chevrolet alone sold 19,186 electric vehicles in Q1 2025, a 114.2% increase over the 8,957 units it moved in the same quarter last year. The big success story was the Equinox EV, which led the brand’s lineup with 10,329 sales. The Blazer EV followed with a staggering 931.2% increase—rising from just 600 units in Q1 2024 to 6,187 units. The Silverado EV also posted a strong debut with 2,383 deliveries. Meanwhile, the Bolt EV and EUV were essentially absent, with only 13 units sold after GM officially discontinued the models two months ago.

GMC contributed solid numbers as well. The Hummer EV pickup and SUV posted a combined 3,479 sales, up 108.6%, while the brand also moved 1,249 units of the new Sierra EV.

According to Cox Auto, Porsche recorded the highest EV growth rate of any brand, with sales up 249% thanks to the arrival of the new Macan Electric. Toyota’s EV sales climbed 195.7% to 5,610 units, the Volkswagen Group jumped 183%, and Volvo spiked 172.9% on the strength of the new EX30 and EX90 models.

Tesla Flounders While Others Flourish

Tesla by contrast, didn’t share in the early-year enthusiasm. The company saw its US sales drop 9% year-over-year, delivering 128,100 vehicles in Q1. Still, even with the decline, Tesla holds a commanding 43.5% share of the U.S. EV market—nearly half of all electric cars sold.

Several other automakers also saw declines. Mercedes-Benz posted the steepest drops, down a staggering 58%. Rivian followed with a 37% dip, and Kia slipped 24% compared to the same quarter last year.

Looking ahead, Cox Automotive expects the rest of the year to be anything but smooth. “The rest of 2025 will likely be a volatile one for EV sales in the U.S., despite the introduction of new product and healthy incentives,” the firm noted. Tariff-related headwinds could weigh heavily, particularly for automakers relying on imported materials. Steel and aluminum tariffs are already a hurdle, and with China supplying much of the world’s EV battery materials, the ongoing trade standoff may distort the market further.

GM had high hopes for their BrightDrop brand, but that enthusiasm waned and the vans were rolled into the Chevrolet lineup. While that move was designed to boost sales and availability, it hasn’t helped much as hundreds of unwanted vans have been piling up.

More: BrightDrop Becomes Part Of Chevrolet

Given the growing inventories, it’s no surprise that the company is temporarily halting production at CAMI Assembly in Ingersoll, Ontario. The Canadian plant started BrightDrop production in late 2022 and employs more than 1,200 people.

Temporary Layoffs and Production Shifts

According to Unifor, GM will initiate temporary layoffs on April 14 and then bring workers back for limited production in May. Production will then end again to allow for retooling for assembly of the 2026 model.

When production resumes in October, the plant will be dropped down to a single shift for the foreseeable future. The union says this will result in the “indefinite layoff of nearly 500 workers.”

Unifor National President Lana Payne described the moves as a “crushing blow” and called on the automaker to “do everything in its power to mitigate job loss during this downturn.” She also called on the government to step up and support Canadian auto workers as well as Canadian-made products.

Payne was particularly adamant about the latter as she pitched the 400 and 600 vans as a “smart choice for Canadian business, government agencies, and for our economy.” That’s a not so subtle hint that she wants the government to buy some of the electric delivery vans.

While BrightDrop’s struggles are far from new, Payne used the opportunity to attack the Trump administration. She accused the United States of creating “industry turmoil” and  said “Trump’s short-sighted tariffs and rejection of EV technology is disrupting investment and freezing future order projections.” She went on to claim this is “creating an opening for China and other foreign automakers to dominate the global EV market.”

Pricing Dilemma

As for the vans themselves, BrightDrop’s offerings start at $77,900, providing up to 614.7 cubic feet (17,406 liters) of cargo space and a combined range of up to 272 miles (438 km).

However, rival electric vans are far cheaper as the Ford E-Transit Cargo starts at $51,000 while the Mercedes eSprinter can be had for $61,180. That’s a bit of an apples to oranges comparison, but it’s not hard to see why hundreds of BrightDrop vans are sitting on dealership lots.

Despite the problems, Unifor noted the company is committed to CAMI Assembly and the 2026 vans will be getting “upgrades.” What those are remain to be seen, but hopefully a smaller battery pack is on the way to reduce pricing.

The automotive industry is currently in a state of collective disorder. And while Donald Trump’s constantly evolving tariffs, which make the headlines daily as they have far-reaching consequences in whole countries and their economies, may play a huge role in that, it’s not the only one.

Electric vehicles, which were touted by almost everyone as dominating all major markets in the (very near) future, are definitely gaining ground with each passing year, just not at the rate most automakers were expecting. Excluding China and Norway, the rate of adoption by buyers is not as high as initially predicted, which has led many manufacturers to reverse their pledge to go all-electric and continue producing ICE-powered models in the interim.

More: GM Just Blinked After Trump’s Tariff War Escalated

Now, GM is about to temporarily lay off 200 out of its 4,500 workers at the all-electric Factory Zero plant in Detroit. As reported by US News, a company source explained that this move is not related to Trump’s tariffs but rather to the automaker adjusting its production to “align with market dynamics”.

For those among us who don’t speak corporate, this means that Factory Zero, which builds solely electric vehicles, specifically the Hummer EV SUV and pickup truck, the Chevrolet Silverado EV, the GMC Sierra EV, and the Cadillac Escalade IQ, needs to slow down for a while as demand for EVs is not as strong as GM anticipated.

Factory Zero used to be known as the Detroit-Hamtramck plant until 2020, when GM decided to turn it into a state of the art hub for manufacturing electric vehicles based on its Ultium platform. To that end, it poured in $2.2 billion which at the time, was, in the company’s own words, the “single largest investment in a plant in GM history”.

The plant’s grand opening took place on November 17, 2021, and then President Joe Biden was there to celebrate this milestone alongside General Motor‘s leadership and factory workers. “GM’s U.S. manufacturing expertise is key to achieving our all-electric future,” GM Chair and CEO Mary Barra said at the opening.“This is a monumental day for the entire GM team. We retooled Factory ZERO with the best, most advanced technology in the world to build the highest quality electric vehicles for our customers.”

Moreover, executive vice president of Global Manufacturing and Sustainability Gerald Johnson stated that “To meet our ambitious EV transition, GM’s North American EV vehicle assembly capacity will reach 20 percent by 2025, and then 50 percent by 2030”. Seems that this target turned out to be more ambitious than GM expected, but if it’s any consolation, the same is true for practically all major car manufacturers – except the Chinese.

Remember the good old days when radio head units were a one-size-fits-all affair, and dealers or aftermarket suppliers could quickly and easily upgrade your car’s stereo with a screwdriver and a bit of elbow grease? The gradual replacement of single and double-DIN head units for proprietary layouts, screens, and software was heralded as progress. But when car manufacturers decide they no longer want to include a feature, it leaves frustrated owners without an option.

That’s what happened when General Motors decided to drop Apple CarPlay and Android Auto for its Ultium EV platform. Naturally, customers were a little miffed, but one dealer came to the rescue, offering to install an aftermarket solution that allows screen mirroring.

Read: Why GM’s Software Boss Thinks Ultifi Can Beat Apple CarPlay

But now GM has stopped it, according to The Drive. The dealer claims GM instructed them to stop offering the kit. Additionally, the manufacturer of the kit pulled the product from its website, claiming it was no longer viable to keep selling it.

Mirroring Dreams

Back in 2023, General Motors made the controversial decision to drop Android Auto and Apple CarPlay support from its new-generation EVs. Instead, it would offer its own smartphone-compatible software solution: Ultifi.

At the time, GM defended the move, saying that it helped the company offer a more “deeply integrated experience that you can create with the vehicle” by building a system from the ground up. The future of autonomy, as well as other features such as battery preconditioning, were all listed as reasons why GM’s own tech was the way forward.

As is often the case, the aftermarket seemingly came to the rescue when White Automotive and Media Services (WAMS) developed a kit that allowed OEM-like integration of the two most popular screen mirroring apps.

The only catch was that the WAMS kit wasn’t something a hobbyist or casual user could install. Instead, it required a specialist touch. A single dealership, LaFontaine Chevrolet in Plymouth, Michigan, was tapped to offer the professional install.

The Unsurprising Block

As you can easily guess, GM wasn’t very pleased with the situation. The company launched an investigation into the kit, and a company spokesperson said: “Aftermarket services that introduce features not originally designed, thoroughly tested, and approved by GM may cause unintended issues for customers. These issues could affect critical safety features and may also void portions of the vehicle’s warranty.”

It all sounds like this was a specialist piece of kit that, at best, modified and, at worst, wholly bypassed GM’s proprietary software. And with the amount of data that cars can collect nowadays, there’s also a question mark over just how protected one’s personal info is after the installation of a third-party device. As we’ve reported many times, though, that’s also a big issue for automakers themselves and how they use owners’ data, so it’s kinda the kettle calling the pot black.

Are We At The Mercy Of Automakers?

With the WAMS system only offered by one dealership and the complexity of the kit precluding DIY installers, it can be assumed that with the only distribution channel shut down, WAMS couldn’t see a future in the product.

However, it’s another stark reminder that as cars become more tech-laden, we’re increasingly at the behest of the manufacturers who can decide to end support for key selling points at any time. Not to mention putting already installed features behind a paywall despite the hardware already being there. Sure, they might call them subscriptions, but milking their customers trying to cash in for a software update by any other name still smells fishy.

General Motors and Hyundai announced they were exploring a partnership focused on joint product development, manufacturing, and clean energy technologies last fall. The companies were coy on specifics, but reports emerged in January that Hyundai could supply GM with electric vans.

Fast forward to today and the pieces are starting to fall into place as Reuters is reporting that Hyundai could give GM two electric commercial vans. In return, GM could give Hyundai a pickup that would be based on the Chevrolet Colorado and GMC Canyon.

More: Hyundai Could Supply GM With Electric Commercial Vehicles

This is interesting to note and it makes us wonder if the truck could serve as a replacement for the Santa Cruz. The company only sold 32,033 units in the United States last year and the model starts at $30,200 which is only $3,295 less than the Colorado.

Hyundai is also said to be keen on offering a version of the Chevrolet Silverado and GMC Sierra. However, GM “hasn’t put that option on the table” and this implies it could be a big ask.

One of the vans is said to be based on the Hyundai ST1 and it would reportedly be imported from South Korea. However, the automaker is reportedly considering North American production by 2028. This could occur at either an existing plant, a contract manufacturer, or at an all-new facility. The latter would ramp up slowly, but could have an annual production capacity of more than 100,000 units by 2032.

The report goes on to say GM is expected to eliminate the aging Chevrolet Express and GMC Savana vans soon, so the Hyundai-sourced EVs could serve as their replacements. However, the threat of tariffs looms large.

Aside from vehicles for the United States, the companies are reportedly discussing the possibility of Hyundai providing GM with compact crossovers for Brazil. Unsurprisingly, it’s expected to be based on the Creta, which is built in the country.

Hyundai is also said to be considering deals that extend far beyond vehicles and include joint purchasing and development of everything from batteries to computer chips.

EV sales are on the up across several key markets, with China leading the charge with a 76 jump in February 2025, followed by Europe with a 29 percent rise. Even with a potential shift in US policy under the leadership of President Donald Trump, North America too has recorded significant growth – 20 percent up year-to-date.

While the rate of adoption may not have quite hit the lofty targets some manufacturers had, Cadillac is ready for a drastic shift towards electric cars. By the end of 2025, Cadillac will offer at least five EVs, including the Lyriq, the Escalade IQ and IQL, and the Optiq crossover. Soon, the three-row Vistiq will join the party, along with the ultra-luxury $300,000+ Celestiq.

Read: 2026 Cadillac Escalade IQL Is Long, Really Long

The new models are the backbone of Cadillac’s predictions that EVs will account for 30–35 percent of U.S. sales in 2025, a significant jump from the 18 percent they represented last year. “The momentum is really there,” said Brad Franz, Cadillac’s director of marketing, in an interview with CNBC. “We’re going to ride that momentum and we’re not launching the vehicles to redistribute the business among [internal combustion engines] and EV portfolio. It’s to grow the business.”

Scaling Back The EV Dream

Of course, Cadillac’s latest strategy is vastly different from what it had proposed a few years ago. Despite EV sales growing year by year, the rate by which they increase hasn’t quite met expectations. In response, Cadillac has walked back its initial plans to become an all-electric car manufacturer by 2030.

The party line is that the brand will let consumer demand dictate when combustion cars disappear from its lineup. Reading between the lines, parent company General Motors is also looking to hedge its bets with a new administration that campaigned heavily against federal support for EVs.

Crucially though, it isn’t stopping Cadillac from offering a full range of EVs. Its overall US sales grew by 8.8% in 2024, with Lyriq sales more than tripling since its late 2022 debut, so it seems there’s potential there. As the brand balances EV expansion with continued gas-powered offerings, its commitment remains clear: providing customers with choice in the evolving luxury vehicle landscape.