Chevy's Least-Sold SUV Is Costing The Company Tons Of Money
Launching in 1911, Chevrolet is among the longest-running auto brands in the United States. Chevy is also one of consumers' favorite car brands – having made some of the best-selling vehicles of all time (shout out to the Chevy Impala). However, not every model has been a hit for the brand, and there's perhaps no better example of this than the Chevy Blazer electric vehicle (EV). To put it bluntly, this car has been costing General Motors (which owns Chevrolet) a ton of money in recent years.
Sales data from GM Authority shows that the Blazer EV was Chevrolet's worst-selling 2025 vehicle with just 22,673 sales — a 2.1% drop from 2024 figures. Making the situation worse is the fact that sales dropped more than 70% in Q4 2025 alone (presumably due in large part to the elimination of the federal EV tax credit). Things aren't getting any better in 2026 either. Per CarEdge, the Blazer EV is the eighth worst-selling car in America, as of May 2026.
GM's profits have struggled overall, with revenues showing a 0.9% decline year-over-year as of the end of Q1 2026, while gross profit margins slumped from 12.49% at the start of 2025 to just 6.10% at the end of Q1 2026, per Macrotrends. While the Blazer EV certainly isn't entirely to blame, it doesn't help that EV manufacturing costs can be up to 45% higher than traditional combustion engine cars. However, despite the fact the Blazer EV's 2026 sales are already tracking lower than the previous year, GM raised the starting price of every Blazer EV trim level by $400 in early 2026 to try and offset tariffs and other costs.
The Chevy Blazer EV's problems started early
The Blazer EV's struggles might seem surprising considering it had the makings of a success. The Blazer nameplate is an established one that has been around since the 1960s. Plus, with consumers today spending a small fortune on gas while also being more environmentally conscious, an EV vehicle with fast-charging capability seems like it would be a smart choice. Also, the Blazer EV ranked among Kelley Blue Book's best electric SUVs from 2024 to 2026, and nabbed Motor Trend's 2024 SUV of the Year. However, all of these accolades mixed with some serious issues early-on, including software glitches and reliability problems.
These accolades are also in contrast to one particularly brutal 2024 review from Inside EVs, in which the Blazer broke down during a charging session — just 28 hours into a week-long test. The Edmunds review team also hasn't been overly impressed, giving both the 2025 and 2026 models middling average scores and citing lackluster handling and acceleration. Naturally, these un-enthusiastic assessments can negatively affect consumer interest.
More significantly for sales though, there was a stop-sale order that temporarily paused availability from 2023 through early 2024 to address software issues. It was lifted a few months later, after which Chevrolet lowered the Blazer EV's price point. This likely affected the vehicle's momentum with prospective buyers.
Tax credits and depreciation might also be to blame for poor EV sales
Chevy can't be blamed entirely for the sales challenges surrounding its Blazer EV. As part of the tax code overhaul set forth by the One Big Beautiful Bill Act (OBBBA), consumers can no longer claim a tax credit for buying an EV. Prior to the bill, EV purchases came with a substantial $7,500 federal subsidy for buyers. However, thanks to the OBBBA, this credit expired in late September 2025 and, as of May 2026, no alternative has been introduced to make EV purchases more appealing to the general public yet.
Another factor is the rapid depreciation of EVs in general. As Automotive News reported in March 2026, electric vehicles returning to market after being leased for a few years are worth thousands of dollars less than anticipated, creating a potential industry deficit in the billions. Plus, according to Recharged, electric vehicles often lose a whopping 50% to 65% of their value within the first five years — with some declining as much as 75% during that same time. Combined with the loss of federal tax incentives, this has created a challenge for EV makers trying to sell older inventory. However, considering the Blazer EV's already tumultuous sales and lackluster reputation, the brand may need to do some serious rethinking of its EV strategy.