General Motors will face a $1.6 billion hit in the next quarter due to slashed U.S. tax incentives for electric vehicles. Shares fell slightly ahead of the news. The EV tax credit ended last month, worth up to $7,500 for new EVs and $4,000 for used ones.

Environmental Protection Agency eases auto tailpipe emissions rules as Trump undoes EV incentives. Trump challenged federal EV charging funds and blocked California’s gas-powered vehicle sales ban, reducing pressure on automakers to shift away from gas vehicles.

GM to take $1.2 billion in charges for EV capacity adjustments and additional hits as production adjusts. This doesn’t affect current Chevy, GMC, and Cadillac EVs. GM previously announced a $27 billion investment in electric vehicles. CEO Mary Barra aims for more U.S. EV sales than Tesla by mid-decade.

U.S. automakers face challenges in long-term planning due to policy changes. Chinese automakers like BYD pose competition as their sales grow. BYD’s success is driven by China’s EV boom, challenging Tesla and other global automakers as they expand into Europe and other markets.

Read more at Yahoo Finance: GM to take a $1.6 billion hit as tax incentives for EVs are slashed and emission rules ease