General Motors says it will book a 1.6 billion-dollar charge in the three months that ended in September as it adjusts its electric-vehicle strategy.

The American auto giant said on Tuesday that it expects EV sales to decline after the expiry of a tax credit of up to 7,500 dollars for US buyers at the end of September.

The charges include adjustments to GM’s EV production capacity and contract cancellation fees.

GM said the Trump administration’s moves to ease emissions regulations for gasoline-powered vehicles is also likely to affect EV adoption.

It said it is possible that it may have to book further charges in the future.

GM is not the only automaker reassessing its EV strategy in the United States. Japanese automakers are cutting the range of fully electric models they produce in the country.