Detroit shifts back to gas-powered cars and trucks as EV era ends

By Mike Lee | 10/27/2025 06:59 AM EDT

Ford and GM stocks jump as they project profits despite tariffs and the end of EV tax credits. “We expect to reduce EV losses,” GM says.

General Motors CEO Mary Barra projects profits for the automaker.

General Motors CEO Mary Barra was optimistic last week as she projected profits for the automaker despite tariffs and the end of the EV tax credit. GM and Ford are increasing production of gas-powered SUVs and pickup trucks. Stephanie Scarbrough/AP

The two major U.S. automakers say they will earn hefty profits by shifting back to building gas-powered pickup trucks and SUVs and through the Trump administration’s plan to roll back vehicle pollution standards.

In earnings reports and calls last week, Ford and General Motors said they are shifting back to building gas-powered pickup trucks and SUVs, which are the most profitable vehicles they sell, to cut their losses on EVs.

“We expect to reduce EV losses in 2026 and beyond,” General Motors CEO Mary Barra said in a letter to shareholders. She added, “As I have said, electric vehicles remain our North Star.”

Wall Street cheered the news.

GET FULL ACCESS

The transformation of the energy sector.

Policy. Science. Business.

Congress. Legislation. Politics.

The leader in energy and environment news.

Late-breaking news.