General Motors faces its most critical challenge in electric vehicle strategy because political restrictions and market competition threaten their recent achievements in the EV sector. The EV market challenge proved difficult for GM during the past but the company increased both sales and market performance against Tesla during the last year. Presented changes in policy sponsored by former President Donald Trump threaten to unsettle this developing progress.  

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GM recorded 12% EV sales in the U.S. during Q4 of 2023 thus making its market position the second best next to Tesla's 44.4% according to Cox Automotive. The EV product expansion at GM proved essential for company growth with the forthcoming dozen models including the Cadillac Lyriq which outsold its initial sales projections at 28,402 units. During the fourth quarter period Chevrolet Equinox and Blazer EV earned 22% and 40% of their respective model names in total deliveries.  

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The automotive company continues its full-throttle EV expansion while running at a deficit and observing other manufacturers directing their efforts toward hybrid vehicle development. As GM keeps investing in an electric vehicle future the company continues its dedication while competitors including Ford along with Toyota focus on hybrid development. Rory Harvey who leads GM’s global markets operations maintained that wide product diversity is crucial because "We’ve got the broadest lineup out there and we definitely have momentum."  

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GM faces potential major obstacles in the pursuit of its current strategy. Trump announced plans to terminate the USD 7,500 federal EV tax credit and he will impose 25% import taxes on GM vehicles from Mexico and Canada that produce production facilities for the Blazer and Equinox EVs. The modifications would increase EV pricing at GM and restrict its market penetration.  

Market experts believe GM needs to pass the 2025 threshold to preserve its electric vehicle progression into the future. A significant stage will come with the arrival of the next-generation Bolt as its most cost-effective EV model priced at about USD 30,000. 

Despite its recent progress, GM’s long-term EV vision remains uncertain. While the company aims for an all-electric fleet by 2035, EVs accounted for only 6% of its fourth-quarter sales, with large trucks and SUVs — challenging segments to electrify — remaining its bestsellers.