Trump's Transition Team Targets Electric Vehicle Tax Credit

President-elect Donald Trump's transition team plans to eliminate the $7,500 electric-vehicle tax credit as part of broader tax reform. This move could impact the U.S. EV market significantly. Tesla, notably, supports the repeal, citing potential competitive advantages despite possible initial sales impact. The decision aligns with Trump's energy policy leanings.

In a significant policy development, President-elect Donald Trump's transition team is reportedly planning to eliminate the $7,500 tax credit for electric vehicle purchases. The move, aimed at broader tax reform, is anticipated to have serious effects on the U.S. EV market, which is currently facing challenges.

Despite being a major beneficiary of such credits, Tesla, the largest electric vehicle seller in the country, reportedly supports the repeal. Elon Musk, Tesla's CEO, commented that removing the subsidy might temporarily impact Tesla's sales but would be detrimental to its competitors, including major traditional automakers like General Motors.

The decision comes as part of discussions led by prominent figures such as Harold Hamm and North Dakota Governor Doug Burgum within Trump's energy-policy transition team. The initiative seeks consensus in a Republican-dominated Congress, aligning with Trump's focus on boosting U.S. oil production while rolling back on clean energy subsidies.

(With inputs from agencies.)