General Motors will take $1.6 billion in charges due to changes in electric-vehicle plans and the expiration of a federal tax credit for EVs, impacting demand. U.S. carmakers are delaying or canceling EV models and investments, citing weaker demand. Shares of GM were down 2.5% in premarket trading.

The Trump administration’s removal of a $7,500 federal tax credit for EVs will further strain the market. GM expects a slowdown in EV adoption due to changes in government policies. The charges include a $1.2 billion non-cash impairment for EV capacity adjustments and $400 million for contract-cancellation fees and settlements.

Read more at Yahoo Finance: GM takes $1.6 billion charge as it reassesses EV plans