Trump Targets EV Tax Credit in Bold Energy Shift

Donald Trump's transition team plans to eliminate the $7,500 EV tax credit, crucial for U.S. electric vehicle adoption, as part of broader tax reforms. Key figures, including Elon Musk, are engaged in these discussions which aim to bolster oil-focused energy policies.

In a major policy shift, President-elect Donald Trump's transition team is set to abolish the $7,500 consumer tax credit for electric vehicle (EV) purchases, according to insiders with direct knowledge of the matter.

This move could significantly affect the U.S.'s already slowing EV transition, despite Tesla's backing for ending the subsidy. Renowned for leading in EV sales, Tesla appears to support this decision, while some in the industry fear it could devastate competition.

This proposal is spearheaded by an energy policy team led by billionaire oil tycoon Harold Hamm and North Dakota Governor Doug Burgum. The team argues that rolling back the tax credit will garner consensus within a Republican-controlled Congress.

(With inputs from agencies.)