EV Shake-Up in the U.S.: GM Slashes Production While Tesla Loses Ground

GM Pulls Back at Spring Hill Factory: EV Expansion Hits Snags

General Motors is taking action at its Spring Hill, Tennessee assembly plant—home to the Cadillac Lyriq and Vistiq SUVs—by cutting production and halting operations in December. This adjustment includes laying off one of two worker shifts and delaying the launch of a planned second shift for Chevy Bolt EVs in Kansas City. The move comes in response to weaker consumer demand following the rollback of a $7,500 federal EV tax credit under the Trump administration. GM confirmed these changes are designed to align production with more tempered expectations for EV market growth into mid-2026.

Reuters

Tesla’s Market Dominance Fades: Lowest U.S. Share in Years

Meanwhile, Tesla’s stranglehold on the U.S. EV market continues to loosen. In August, its market share fell below 40%, marking the lowest level since 2017. Despite a record month for U.S. EV sales—146,147 vehicles, nearly 10% of total auto sales—Tesla's performance slipped. Analysts attribute the decline to intensifying competition from Ford, GM, Hyundai, and install of newer entrants, as well as political backlash linked to CEO Elon Musk’s public affiliations and strategic distractions.

MarketWatch

Axios

What This Means for U.S. Automakers and EV Buyers

Demand Reality Check

Automakers face a new normal as the end of generous EV incentives unveils a consumer market far more cost-sensitive and less predictable.

Production Strategy Shift

Manufacturers like GM are now recalibrating factory plans and timetables—a shift that could slow EV rollout but potentially stabilize supply chains.

Opportunity for Rivals

Tesla's retreat opens the door for legacy automakers and new startups to gain ground—especially if they can offer compelling vehicles and expand distribution effectively.

Long-Term Adaptation Needed

The auto industry must reevaluate its pitch to consumers—not just as early adopters, but mainstream buyers balancing price, utility, and lifestyle needs.

In essence, EV momentum in America is entering a new phase—less reliant on subsidies, more driven by competitive offerings and market savvy. From production control to marketing strategy, the pressure is on to transform challenges into sustainable growth.