General Motors (GM) announced on Tuesday that it will record a $1.6 billion charge in the upcoming quarter following the Trump administration's rollback of federal electric vehicle (EV) incentives and relaxed emissions standards — a move that has shaken the US auto industry.

The automaker confirmed in a regulatory filing that the charges include $1.2 billion in non-cash impairment costs tied to EV production capacity changes and $400 million related to contract cancellations and other commercial settlements connected to its EV investments, Reuters said.

Shares of GM fell nearly 2% before the market opened Tuesday. The financial hit follows the end of the US clean vehicle tax credit program, which previously offered buyers up to $7,500 for new EVs and $4,000 for used ones.

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