General Motors dips as $6 billion EV charge hits

Shares of General Motors GM.N down 1.9% at $83.50 after co to take $6 bln charge to unwind some EV investments

Co says writedown stems from reduced EV production plans and supply chain fallout; most of charge is $4.2 bln future cash outflows tied to contract cancellations and supplier settlements

Move will not affect U.S. lineup of roughly a dozen EV models, GM says

"The $4.7 bln cash component is sizable but within the cushion already embedded in our model… [but] the expected cash outflows reduce GM’s capacity for meaningful share buyback upside this year,” TD Cowen says in a note

This comes weeks after Ford announced a larger charge; automakers have been scaling back EV factory work since last summer after a U.S. tax and spending package eliminated key incentives, darkening the outlook for EV demand

EV sales slumped following elimination of $7,500 federal tax credit on Sept. 30

As of last close, GM stock down 66.9% over the past year