General Motors Company (GM) Reportedly Seeks to Overturn California’s Electric Vehicle Mandate

General Motors Company (NYSE:GM) is pressing lawmakers to halt California’s aggressive zero-emission vehicle mandate, marking a notable change in the company’s position as demand for electric vehicles in the US shows signs of slowing, as reported by the Wall Street Journal.

The automaker shared its stance in an email sent to thousands of its salaried employees last week. Here is what the email read:

“Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability.”

General Motors Company (NYSE:GM), once a strong supporter of California’s ambitious ban on gas-powered vehicle sales by 2035, is now lobbying against it. The company is urging employees to push Senators to overturn a waiver allowing California to set stricter emissions rules, which have been adopted by 11 other states. Although GM had previously aligned its own EV goals with the state’s, slowing EV demand and market challenges have prompted a shift.

EV sales are falling behind expectations—even in California—and automakers, including General Motors Company (NYSE:GM) and Ford, are pulling back on electric vehicle plans. GM has scrapped its goal of building 400,000 EVs by mid-2024 and delayed key launches as consumers turn to cheaper alternatives and federal tax incentives face potential rollbacks. GM has surged by nearly 12% in the past 12 months.

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