Trump Transition Team Plans to End EV Tax Credit, Sources Say

Nov 14 – Donald Trump’s transition team is considering eliminating the $7,500 consumer tax credit for electric vehicles (EVs) as part of broader tax reforms, sources close to the matter revealed.

This move could significantly impact the U.S. electric vehicle market, which is already facing challenges. Interestingly, representatives from Tesla, the nation’s largest EV maker, have reportedly supported ending the subsidy, according to the sources.

Elon Musk, Tesla’s CEO and a key Trump supporter, previously stated that removing the subsidy would slightly hurt Tesla sales but could have a much bigger negative effect on Tesla’s U.S. competitors, such as General Motors.

The discussion about repealing the EV tax credit is being led by energy-policy experts within Trump’s transition team, including billionaire Harold Hamm, founder of Continental Resources, and North Dakota Governor Doug Burgum. They have met several times since Trump’s November election victory, including at his Mar-a-Lago club.

The EV tax credit, introduced under President Joe Biden’s Inflation Reduction Act, has been a key part of efforts to boost electric vehicle adoption in the U.S.

The move to remove it has drawn opposition from the auto industry. The Alliance for Automotive Innovation, which represents most major automakers except Tesla, urged Congress in October to keep the EV tax credit, calling it crucial for maintaining the U.S. as a global leader in automotive technology.
(By Reuters)