The move marks a shift from GM’s earlier support for stricter emissions goals.

General Motors Co is reportedly calling on its white-collar employees to persuade U.S. senators to block California's 2035 prohibition on new gasoline vehicle sales. 

The company is facing dwindling electric vehicle demand and escalating production costs.

According to a report by The Wall Street Journal, GM's internal email "to thousands of its white-collar employees" warned that emission standards that fail to reflect market realities risk making vehicles unaffordable and limiting consumer options. 

The legacy automaker once supported California's strict emissions goals while planning to stop selling gas-only cars by 2035.

The company changed its strategy while the broader EV market experienced a slowdown. 

According to Motor Intelligence data, EV sales in the U.S. dropped by 5% in April, while the total auto market expanded by 10%. 

California EV sales reached only 20% of total sales, which falls short of the intended 35% target set for 2026.

GM joins the Alliance for Automotive Innovation and other automakers to endorse legislation that would terminate California's permission to establish more stringent emission standards.

The Senate might hold a vote starting next week.

Meanwhile, General Motors (GM) could benefit from the U.S.-China 90-day tariff truce, which reduces U.S. tariffs on Chinese imports from a combined 145% to 30%, and lowers China’s tariffs on U.S. goods to 10%. 

Mizuho said the temporary easing is positive for macro demand and electric vehicle parts imports, though lower EV subsidies remain a headwind. 

The firm raised its price target on GM to $58 from $53, according to The Fly.

The news comes amid plans by General Motors (GM) to commercialize lithium-manganese-rich (LMR) prismatic battery cells for next-generation EVs in partnership with LG Energy Solution. 

GM aims to begin U.S. commercial production through its Ultium Cells joint venture by 2028, with pre-production starting in late 2027. 

The automaker said the new LMR cells offer 33% higher energy density than lithium iron phosphate (LFP) cells at similar costs and could help deliver over 400 miles of range in future electric trucks.

The stock has declined nearly 2% so far in 2025.

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