General Motors (GM) is leading a charge to reverse Californie‘s ambitious electric vehicle (EV) mandate, citing market challenges and misalignment with consumer demand. As the state prepares for a Senate vote as early as this week to revoke its emissions waiver, GM’s shift in strategy signals broader tensions in the EV industry, according to a detailed report by The Wall Street Journal.

GM’s Reversal on EV Goals

GM, once a vocal supporter of California’s EV targets, has now backtracked on its commitments. The automaker initially set an internal goal to end sales of nearly all gas-powered vehicles by 2035 and aimed to build 400,000 EVs by mid-2024. However, last year, GM abandoned this target, citing delays in its EV truck factory and scaled-back plans for new models. “We need your help!” GM wrote in an email to thousands of its white-collar employees last week, urging them to lobby senators. The company argues that “emissions standards that are not aligned with the market pose a serious threat to our business, by undermining consumer choice and vehicle affordability,” as stated in the email.

California’s mandate, adopted by 11 other states, requires that by 2035, all new vehicles sold be zero-emission. Yet current market data paints a stark picture: in 2026, zero-emission vehicles should account for 35% of sales, but they currently faire up only 20% of the state’s auto market. Nationally, EV sales fell 5% in April 2025, while the broader U.S. car market grew by 10%, according to Motor Intelligence. EVs now constitute just 7% of the U.S. market, highlighting the gap between regulatory goals and consumer adoption.

Gm Pushes To Overturn California’s Ev Mandate Amid Industry Struggles

Industry-Wide Pushback

GM is not alone in its efforts. The company has joined the Alliance for Automotive Innovation, representing automakers like Stellantis, Fordet Toyota, in calling on Congress to “prevent the inevitable jobs and manufacturing fallout from these unachievable regulations.” A GM spokesperson emphasized the company’s stance, stating, “GM believes in customer choice, and we continue to focus on offering the best and broadest portfolio of vehicles on the market.” Meanwhile, GM continues to invest in EVs, recently launching new electric models, though it advocates for a single national emissions standard over California’s stricter rules.

Dealers are also feeling the strain. Barry Stoler, a Toyota and Lexus dealer in Long Island, New York (en anglais), reportedly noted the challenges of selling EVs amid waning federal tax credits. “If the factory doesn’t subsidize it and the government doesn’t subsidize it, the consumer can’t afford it,” Stoler said, adding that customers simply “aren’t there” for EVs in sufficient numbers.

Regulatory and Consumer Challenges

The California Air Resources Board, which sets the state’s auto mandates, defends the rules, arguing they offer flexibility. A spokesperson for the board explained, “Sales, for instance, are averaged over a three-year period, and manufacturers can use credits banked from prior years.” However, critics like Sen. John Barrasso (R., Wyo.), the No. 2 Senate Republican, argue the mandate is “completely impractical” and “expensive beyond the affordability of most families.” Barrasso stated, “This is about an effort to eliminate every gas-powered vehicle in America.”

Consumer sentiment echoes these concerns. Rep. Laura Gillen (D., N.Y.), representing a state that adopted the mandate, warned that “if everybody in my district went out and got an EV, the grid could not accommodate that,” highlighting infrastructure limitations. With EV sales struggling and economic pressures mounting, the Senate vote could reshape the trajectory of EV adoption in the U.S., potentially easing regulatory burdens but slowing the transition to zero-emission vehicles.