GM operates on a functional model, not siloed brand divisions, to maximize economies of scale. By developing a single core platform that can be adapted for different brands like Chevrolet and Cadillac, the company leverages its global scale to offer more features and technology at competitive price points, a key advantage in the capital-intensive auto industry.

While the loss of the tax credit will hurt sales short-term, it also removes the "government mandate" attack line used by politicians. This forces EVs to be judged as just another car, allowing them to compete on their own merits like lower operating costs and better performance.

With a key government subsidy gone, Tesla is using a rental model as a 'try-before-you-buy' tactic. This shift indicates EV companies must now rely on creative sales funnels and direct product experience, rather than financial incentives, to convert hesitant customers.

CEO Mary Barra has transformed GM's strategic planning from a rigid annual event into a more frequent and fluid process. This shift allows the senior leadership team to react quickly to new market data and technological learnings, preventing 'momentum' from pushing a program forward when a pivot is needed, a critical capability in the volatile auto market.

Despite devising a clever, IRS-approved leasing scheme to extend EV credits, both companies immediately abandoned the plan after a few senators threatened an investigation. This rapid reversal highlights the auto industry's extreme sensitivity to political pressure, even when legally in the clear.

The belief that consumers needed electric versions of familiar gas-guzzling trucks and SUVs led to EVs that were too big, heavy, and expensive. The market is now forcing a pullback from this strategy towards smaller, more efficient, and profitable designs.

Unlike competitors creating isolated 'skunkworks' teams for EV development, GM pursues a steady, integrated approach. The company believes this avoids the 'ingestion risk' of bringing a radical project back into the main organization, allowing innovations in battery tech and architecture to scale more quickly and efficiently across its massive global portfolio.

The global energy transition is also a geopolitical race. China is strategically positioning itself to dominate 21st-century technologies like solar and EVs. In contrast, the U.S. is hampered by a legacy mindset that equates economic growth with fossil fuels, risking its future competitiveness.

Without government incentives to offset high costs, American carmakers like Ford are now forced to pursue radical manufacturing innovations and smaller vehicle platforms, directly citing Chinese competitors like BYD as the model for profitable, affordable EVs.