Detroit’s top carmaker just wrote down $7.6 billion on its EV business—and grew its market cap by the same amount. Here’s how GM did it

General Motors shares surged as much as 9% on Tuesday, adding over $7 billion to the company’s market capitalization, after the biggest automaker in Detroit reported earnings. Disclosing a massive $7.6 billion dollar write-down on its electric vehicle ambitions, the automaker also wowed the Street with blockbuster cash generation, fatter shareholder payouts, and a confident outlook for 2026.​

The Detroit giant, long seen as the standard-bearer for traditional U.S. carmaking, reported 2025 adjusted Ebit of $12.7 billion, landing at the high end of its guidance range, and $10.6 billion in adjusted automotive free cash flow. GM also said 2025 marked its highest U.S. market share in a decade and its fourth straight year of share gains, supported by low dealer inventories, low incentives, and firm pricing on trucks and SUVs.​

Write-down resets EV strategy

The headline negative in the quarter came from already known struggles in GM’s electric vehicle business. Management booked a total of $7.6 billion dollars in EV-related restructuring charges in the second half of 2025, including impairments and cash costs tied to right-sizing capacity after demand and U.S. policy shifted against aggressive EV targets.​

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