Total Motors is going through a curious moment. On the one hand, the general numbers invite optimism and leave investors calm. On the other, there is a front that It is still a headache, the electric car business.
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The company presented solid results in the first quarter of 2026with a performance that exceeded what many analysts expected.
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However, when you look closely, a less comfortable reality appears. The transition to electrification remains expensive, much more than the company itself would like.
A quarter with a bittersweet taste
The financial balance left an adjusted EBIT of $4.3 billion, a figure that reflects strength in several areas of the business. Added to that is an extra boost thanks to a refund of $500 million dollars, derived from a court ruling that benefited several manufacturers.
That money doesn’t come by chance. The decision by the United States Supreme Court nullified certain tariffs that had been applied in the past to imported vehicles and auto parts. For GM, this represents a direct relief in its accounts.
The company even plans to close the year with an EBIT of between $13.5 billion and $15.5 billionwhich would mark a solid year if the forecasts are met.
The problem appears when analyzing the performance of its electrical division. In the first quarter alone, GM posted losses of $1.1 billion in this segment.
The figure is not minor and responds to several factors. Among them, the cancellation of agreements with suppliers and adjustments in production that ended up directly impacting costs.
If the negative results accumulated since the second half of 2025 are added, The hole amounts to almost $8.7 billion dollars. It is a huge investment in a business that has not yet managed to take off in terms of profitability.
More sales, less profits
Despite everything, GM is not backing down. On the contrary, its presence in the electricity market is growing. In the first quarter of 2026, its share went from 10% to 13% in the United Stateswhich positions it as the second largest seller of electric vehicles, only behind tesla.
This shows that there is interest on the part of consumers. Brand models such as Chevrolet, Cadillac and GMC They are gaining ground, but selling more does not always mean earning more.
Production costs remain high. Batteries, competitive pressure and still limited infrastructure complicate the path to profitability.
Long-term investment and strategy
Far from slowing down, GM continues to bet big. The company announced investments of more than $830 million to strengthen its production network in the United States. In total, it already exceeds $6 billion dollars invested in the last year in this area.
The strategy aims to consolidate its position in the future of the automobile, even if the present still requires financial sacrifices.
In addition, other markets such as China are providing positive results, which helps balance the company’s global balance.
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