On Wednesday, General Motors declined in the after-hours due to potential compliance challenges under the Environmental Protection Agency.
Its stock price went up by 1.18% to $39.42 per share on July 05. On the other hand, it is expected to go down by -0.15% to $39.36 apiece in the upcoming session.
The agency suggested vehicle emissions rules and other regulations based on the requirements for electric vehicles (EVs). General Motors is concerned that there might be a lack of clarity and coordination across agencies.
As a result, the automaker’s ability to stay in compliance might get challenging year after year even when EPA’s targets are met.
Moreover, the company promised to pause the sale of new gasoline-powered cars by 2035. It was confident about its actions in transitioning 50.00% of its EVs by 2023 and 100.0% by 2035.
However, their ability to reach precise electric vehicle shares in applicable averaging sets for every model year must be clarified.
A group representing significant automakers like General Motors said the EPA’s proposal was unreasonable and impossible. It recommended having requirements for 40.00% to 50.00% in 2023 and growth through 2032.
In addition, it supported the original goals of President Joe Biden’s executive order from August 2021. It aims to represent the proper way toward all EVs after some years.
EV General Motors Lane Remains Slow
Despite the robust sales of General Motors in the second quarter, it is still slow compared to Tesla. The company is lagging behind it in terms of EV volume.
The automotive manufacturer sold around 692,000 vehicles in the second quarter. It was 19.00% higher year-over-year. It showcased gains in sales volume in brands like Buick, Cadillac, Chevrolet, and GMC.
Regarding retail, its sales rose by 15.00%, marking a fourth consecutive gain in market share. Also, its numbers became more impressive when volumes from its Envolve program had a 34.00% jump.
However, General Motors took a while to boost its operations on electric vehicles.