General Motors Company (GM) is reportedly trying to overturn California’s electric vehicle mandate

General Motors Company (NYSE:GM) is pressuring lawmakers to suspend California’s aggressive zero-emission vehicle mission, showing significant changes in the company’s position as U.S. demand for electric vehicles shows signs of slowing, as reported in the Wall Street Journal.

The automaker shared its stance last week in an email sent to thousands of employees. Here’s what the email reads:

“Emission standards that do not match market reality pose a serious threat to our business by undermining consumer choice and vehicle affordability.”

General Motors Company (NYSE:GM) once strongly supported an ambitious ban on the sale of gas-powered vehicles in California by 2035, but is now lobbying. The company is urging employees to urge senators to overturn the exemption so that California can set stricter emissions rules adopted in 11 other states. GM previously had aligned state EV targets to state EV targets, but slowing down EV demand and market challenges has prompted a shift.

EV sales are lagging behind expectations even in California, with automakers including General Motors Company (NYSE:GM) and Ford pulling back their electric vehicle plans. GM has abolished its goal of building 400,000 EVs by mid-2024, and as consumers turn to cheaper alternatives, key launches are slower and federal tax incentives are facing potential rollbacks. GM has skyrocketed nearly 12% over the past 12 months.

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