TNB Tech Minute: GM Expects Smaller EV Losses - WSJ Tech News Briefing

WSJ Tech News Briefing – Tech Minute: GM Expects Smaller EV Losses

Date: October 21, 2025
Host: Zoe Culkin

Episode Overview

This Tech Minute episode gives listeners a rapid-fire update on three major tech business stories: General Motors’ revised outlook for EV losses, the soaring profits of Chinese battery giant CATL, and growing concerns about energy demand and antitrust scrutiny linked to data centers and AI.

Key Discussion Points & Insights

1. General Motors’ EV Strategy and Financial Update

GM’s stock saw a notable increase after the company released new guidance, signaling that future losses from electric vehicles will be smaller than previously expected.
Last week, GM announced a $1.6 billion charge for “underused EV and battery factory equipment” (00:16) — a direct result of lower-than-anticipated EV demand after the expiration of the U.S. federal EV subsidy.
- Quote:
  
  "There was a time when GM planned to assemble more than three times as many EVs this year as it’s currently on track to make."
  — Zoe Culkin [00:28]
Despite hitting a record for EV sales this quarter, GM is now “coming to grips with its over investment in the technology.” [00:33]
Key takeaway: The company is course-correcting after overestimating market demand and adjusting to a post-subsidy consumer landscape.

2. Contemporary Amperex Technology (CATL) Profits Soar

CATL, the world’s largest EV battery maker, reported a 41% jump in Q3 profit (about $2.6 billion), with revenues up 13%. [00:41]
The company is benefiting from continued strong growth in China’s EV market, with its stock rising over 40% this year.
- Quote:
  
  "The company is a key beneficiary of the EV sector's growth in China, with its stock rising more than 40% so far this year."
  — Zoe Culkin [00:54]
Insight: While U.S. automakers like GM struggle with EV demand, Chinese battery producers are thriving amid robust local market momentum.

3. Data Centers, AI, and Antitrust Scrutiny

The explosive growth of AI and data centers is fueling unprecedented demand for electricity.
Tech giants are engaging in massive “power purchase agreements” to lock in energy supply and minimize risks in connecting to electric grids. [01:04]
Jonathan Kanter, former DOJ Antitrust official, voiced concerns over the concentration of power in a few large tech firms:
- Quote:
  
  "In an interview, former DOJ antitrust official Jonathan Kanter said he's alarmed by the risk of these circular investments."
  — Zoe Culkin [01:13]
Key point: Regulators are starting to pay closer attention to possible anticompetitive risks tied to energy usage and infrastructure as the AI boom continues.

Notable Quotes & Memorable Moments

[00:28]

"There was a time when GM planned to assemble more than three times as many EVs this year as it’s currently on track to make." — Zoe Culkin
[00:54]

"The company is a key beneficiary of the EV sector's growth in China, with its stock rising more than 40% so far this year." — Zoe Culkin
[01:13]

"In an interview, former DOJ antitrust official Jonathan Kanter said he's alarmed by the risk of these circular investments." — Zoe Culkin

Key Timestamps

00:08 – GM shares jump after updated EV loss guidance
00:16 – GM’s $1.6 billion charge for overbuilt EV/battery capacity
00:28 – Historical GM EV production plans vs. current reality
00:36 – GM’s record EV sales (but still grappling with low demand)
00:41 – CATL reports soaring Q3 profits and revenue growth
00:51 – CATL stock jumps parallel to Chinese EV boom
01:04 – Data center energy demand, tech firms’ energy deals
01:13 – Jonathan Kanter warns of antitrust risks from energy investments

Summary

In less than two minutes, this Tech Minute succinctly highlights:

GM’s scaling back of earlier EV ambitions, recognizing overinvestment in a tougher market
China’s battery leader CATL thriving on a booming domestic EV sector
The looming regulatory scrutiny over tech giants’ AI-fueled energy consumption and power market strategies

The tone is brisk, newsy, and focused on the intersection of business strategy, technology, and regulation—delivering high-level insights for business-minded listeners looking to stay on top of fast-moving industry shifts.

Transcript

A (0:00)

Economic shifts, geopolitical change In a world defined by disruption, what if leaders could turn uncertainty into advantage? Join SAP at the break to hear how organizations can stay resilient and stay ahead. Here's your morning TNB Tech minute for Tuesday, October 21st. I'm Zoe Culkin for the Wall Street Journal. Shares of General Motors jumped this morning after the company reported strong sales and issued new guidance that included smaller losses from electric vehicles in the future. The move comes after GM said last week it would book a $1.6 billion charge to recognize underused EV and battery factory equipment to compensate for low demand after the federal EV subsidy expired. There was a time when GM planned to assemble more than three times as many EVs this year as it's currently on track to make. While the automaker sold a record number of EVs this quarter, it's coming to grips with its over investment in the technology. Meanwhile, the world's largest EV battery maker, Contemporary Amperex technology, reported a 41% rise in third quarter profit, largely due to strong demand momentum. The Chinese battery giant's net profit was the equivalent of around $2.6 billion, up from a year earlier, and revenue rose 13%. The company is a key beneficiary of the EV sector's growth in China, with its stock rising more than 40% so far this year. And the huge demand for energy to power data centers will be a key focus for antitrust regulators moving forward. That's according to a former top official at the US Justice Department's Trust Busting division. With the rising popularity of using power hungry AI tools in everyday life, tech giants are pouring billions of dollars into data centers to cope with the unrelenting demand. And they're turning to power purchase agreements with energy firms to reduce permitting and grid connection risks. In an interview, former DOJ antitrust official Jonathan Kanter said he's alarmed by the risk of these circular investments. That's your TNB Tech Minute. Join us again this afternoon for more. Uncertainty is inevitable, but it doesn't have to hold your business back. Here's Sebastian Steinhauser of SAP again on how companies can adapt to the unpredictable and thrive. Technology is the greatest tool in your tool set to help you create that capability to train that muscle in your enterprise to to adapt fast to change in the environment. And that's where customers are turning to SAP now to say hey SAP, you already run our most mission critical processes in our enterprise. Help us apply generative AI, agentic AI, apply this disruptive technology to improve our agility when it comes to making fast decisions for our business in a very uncertain economic environment. Learn more about how SAP helps businesses conquer uncertainty@SAP.com Uncertainty Custom content from WSJ is a unit of the Wall Street Journal Advertising Department. The Wall Street Journal News Organization was not involved in the creation of this content.