Hey everybody. Welcome back to the Elon Musk Podcast. This is a show where we discuss the critical crossroads that shape SpaceX, Tesla X, The Boring Company, and Neurolink. I'm your host, Will Walden. General Motors is taking a $1.6 billion charge tied to its electric vehicle business, cutting its near term expectations and slowing production as EV demand continues to fall short of earlier projections.
Now, GM revealed the impairment in a regulatory filing, stating that it no longer expects to meet its previous EV volume targets and is adjusting its investment pace accordingly. Now, the charges linked to slower product development and reduce capital spending in areas like battery production and vehicle assembly as the company assesses how aggressively to
pursue its EV roll out. Now the cutback directly effects Altium sells G Miss battery manufacturing joint venture with LG Energy Solution. The filing says GM now plans to reduce the scale and speed of planned battery plan expansions, which were expected to support a fleet of future EVs with battery output tied closely to overall EV capacity. This decision forces GM to accept lower near term volumes across several models. Now. These changes follow a series of delays and scaled back launches
over the past year. The Chevy Silverado EV and Equinox EV were both pushed back from earlier production dates, with updated schedules stretching well into 2025. And in parallel, GM has shifted some of its plant retooling investments away from EVs and toward hybrid vehicles, which have seen stronger demand in both US and overseas markets.
Now, the $1.6 billion write down suggests GM no longer sees this EV strategy as immediately profitable or scalable without deeper restructuring that resets expectations for a company that once promised to sell only 0 emission light duty vehicles by 2035. It also follows A broader market trend where several automakers have admitted that the total cost of EV ownership, including higher interest rates in a weakening resale market, is affecting consumer adoption.
Now, this shift is not a final decision. It directly effects how GM manages its supply chain, though. Contracts with battery material suppliers, charging infrastructure providers, and EV specific parts manufacturers are now under review. GM is actively renegotiating some of these deals, especially those tied to the postponed battery plant build outs. And that's likely to ripple across multiple industries that had remapped up to support GM's earlier EV timelines.
Now GM also cited ongoing challenges and software dev, particularly with its in house Altify platform, which underpins many of the features in its newer EVs. Software bugs and integration issues have already caused delivery delays and added costs. GM had hoped Altify would offer a path to new revenue through subscriptions and vehicle based services, but those plans now look a little bit more distant
than before. But on the retail side, GM is facing increased pressure from Tesla new entrants, especially in the 40 to $60,000 price band where competition is intensifying. With lower production volumes, GM dealers are expected to carry fewer EV units in 2025 and 2026. That could reduce consumer visibility, slower adoption even further, creating a feedback loop that weakens demand just as GM tries to contain its own costs.
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your support for the show. And we're going to talk more, a little bit more about GM. But I also want to talk about the Flight 11 Starship real quick because Flight 11 went off without a hitch. It was a great flight and I'm very excited about it because this leads us into Flight 12 now. The successful completion of Flight 11 mark the end of the Block 2 era for SpaceX Starship, and now SpaceX turns its focus to the revolutionary Block 3 architecture that will debut with Flight 12.
This upcoming mission represents far more than another test flight, though. It's the beginning of Starship's transformation from experimental prototype to completely operational spacecraft capable of lunar missions.
Mars exploration in unprecedented orbital operations with massive payloads of Flight 12 will launch the first Block 3 Starship and Super Heavy Booster featuring Ship 39 and Booster 18. If all goes well now, this mission marks a huge shift in Starship's development philosophy, transitioning from iterative testing to operational
capability demonstration. The Block 3 architecture incorporates years of lessons learned from previous flights while introducing revolutionary technologies that will enable Spacex's long term vision of making life multi planetary and sending people to Mars to live. The timeline for Flight 12 remains fluid, but it's probably going to be around early 2026 ish, maybe spring, following a longer development gap that previous missions due to the extensive changes required for
Block 3 systems. Now, SpaceX has indicated this extended timeline reflects the need for more rigorous testing and validation of this new architecture before flight. This is a huge leap forward for Starship and this could be literally the vehicle that sends us to Mars, not Flight 12, but the vehicle architecture that sends us to Mars. That is a wild thing to think about.
Now back here on Earth, GM insists it remains committed to an all electric future and the current financial disclosure show a pivot to a more kind of cautious execution. Though hybrids, which were once viewed as a temporary bridge tech are now becoming a core part of G miss medium term strategy company is preparing to launch new plug in hybrid variants across multiple brands including Cadillac and GMC. Now I want to know what your thoughts are on hybrid vehicles.
If you are full electric and you never want to see another ICE engine ever again in your life, leave it in the comments. I want to know what you think if you are like me and you see the value in hybrids, I believe it's a really great in between structure and foundational technology that will eventually shape the EV future into full electric of course. And people are scared of moving over to EV.
They have range anxiety. But if you could use a hybrid to get around town, you know, you charge it up at night and then you go to work in the morning with a full charge. You come back at night with, you know, a little bit less charge, then you get charged up again, full charge. You don't use your ICE engine until you absolutely need it, maybe for a longer trip or you know what have you. If you're going to be on the road for a long time, use your
ICE engine. So that would be a great use of a hybrid technology. And I think that's where a lot of people are going to land. It's a jump from an ICE engine to an EV. Everyone, even though Tesla has been working on this for a very long time, you would still be considered an early adopter of an EV at this point because even though you do see them on the road a lot, the majority of vehicles are still ICE engines or hybrids. So you're one of the early adopters.
You're one of those people that really believes in this technology. So with that being said, let me know what you think. Is it E, is it time for GM to go full EV? It's time for you to go full EV. Or is it the hybrid strategy to the future? Hey, thank you so much for listening today. I really do appreciate your support. If you could take a second and hit the subscribe or the follow button on whatever podcast platform that you're listening on right now, I greatly appreciate it.
It helps out the show tremendously and you'll never miss an episode. And each episode is about 10 minutes or less to get you caught up quickly. And please, if you want to support the show even more, go to patreon.com/stagezero and please take care of yourselves and each other and I'll see you tomorrow.