Q4 Auto Sales Slowdown: General Motors Faces 7% Decline as EV Momentum Stalls

General Motors wrapped up 2025 with mixed results—while the company secured its top position in America’s auto market with full-year growth, the fourth quarter told a different story. The Detroit automaker delivered 703,001 vehicles domestically in Q4, marking a 7% retreat from the prior-year period and reflecting broader sector headwinds.

The EV Cliff: What Happened in Q4?

The most striking weakness emerged in General Motors’ electric vehicle segment. EV deliveries plummeted 43% year-over-year to 25,219 units, a dramatic reversal from Q3’s record-breaking performance. The culprit? Timing. Consumers rushed to complete EV purchases ahead of federal tax credit changes, front-loading demand into the third quarter and leaving Q4 depleted.

The damage cascaded across GM’s electric lineup. The Blazer EV, Equinox EV, and HUMMER EV each suffered double-digit percentage declines of 77%, 71.7%, and 49.8% respectively. This correction underscores the challenge automakers face when policy-driven incentives create artificial demand spikes rather than sustainable market momentum.

Core Brands Under Pressure

Beyond EVs, General Motors’ traditional powerhouses stumbled in Q4. Buick sales dropped 10.5% year-over-year, while Cadillac declined 16.7%. Chevrolet and GMC, the company’s volume engines, fell 6.7% and 3.7% respectively. The only bright spot came from GM Envolve’s fleet operations, which notched its strongest fourth-quarter performance since 2018.

2025 Full-Year Performance: The Larger Picture

Despite Q4’s weakness, General Motors posted a 6% increase in full-year sales, cementing its position as America’s leading automaker. The company maintained its sixth consecutive year as the top full-size pickup manufacturer, with Chevrolet Silverado and GMC Sierra combining for their highest sales in two decades. General Motors also retained its 51-year reign in the full-size SUV segment and ranked second nationally in EV sales for 2025.

How Competitors Fared

The fourth quarter revealed industry-wide softness. Tesla delivered 418,227 vehicles (down 16% year-over-year), with Model 3/Y accounting for 406,585 units. Full-year Tesla deliveries reached approximately 1.64 million vehicles, down from 1.8 million in 2024.

Ford Motor Company demonstrated stronger near-term momentum, selling 545,216 units in Q4—a 2.7% year-over-year increase that outpaced the overall market. Ford’s full-year tally reached 2,204,124 vehicles, a 6% gain that boosted its market share to 13.2%. However, Ford’s electrified vehicle sales, including both hybrids and pure EVs, declined 9.5% year-over-year to 69,887 units.

Valuation and Market Outlook

From an investment standpoint, General Motors appears attractively priced. Trading at a forward price-to-sales multiple of 0.42, the company sits well below the automotive industry average of 3.4, suggesting potential undervaluation. The stock has gained 57.5% over the past six months, outpacing the broader automotive-domestic sector’s 48.7% appreciation.

Analyst sentiment has improved modestly. The Zacks Consensus Estimate for General Motors’ 2025 earnings per share increased 18 cents within the past two months, while 2026 EPS expectations rose 14 cents over the past month. The company currently carries a Zacks Rank #1 (Strong Buy) designation.