Trump's Plan to End EV Tax Credits and Its Impact on U.S. Automakers

President-elect Donald Trump's team plans to end the $7,500 tax credit for electric vehicles, potentially affecting the U.S. EV transition. While Tesla supports this, it could negatively impact competitors. The repeal aligns with Trump's campaign promises and faces both industry opposition and political strategizing.

In a move potentially reshaping the electric vehicle market, President-elect Donald Trump's transition team is considering ending the $7,500 consumer tax credit for electric-vehicle purchases, according to sources with direct knowledge. This plan could profoundly impact the U.S. EV industry's already precarious transition.

Tesla, the nation's largest EV manufacturer, surprisingly supports the repeal despite potential sales impacts. CEO Elon Musk suggests that while Tesla might face a minor setback, the repeal could cripple its U.S. competitors. Amid fluctuating stock values for EV makers, the policy shift is a focal point for industry stakeholders.

The repeal, a concept underlined by Trump's campaign, symbolizes a broader attempt to roll back Biden-era environmental policies. This potential policy shift has prompted industry voices, including the Alliance for Automotive Innovation, to urge Congress to uphold the credits, emphasizing the significance for maintaining U.S. leadership in auto manufacturing.

(With inputs from agencies.)