Trump’s Transition Team Eyes Repeal of EV Tax Credit
The transition team for President-elect Donald Trump is considering repealing the $7,500 federal EV tax credit, triggering concerns throughout the auto industry, according to reports from CBT News and other sources.
Ford and General Motors have relied heavily on the subsidy to make their EVs more affordable and compete with Tesla, the nation’s No. 1 EV producer. The United Auto Workers union also would oppose the repeal of the credit, fearing the loss of jobs in newly built or recently overhauled plants.
Tesla CEO and incoming Trump administration advisor Elon Musk has been a vocal proponent for repeal, and some industry experts believe that Tesla is much more equipped to deal with the loss of the subsidy. Tesla may also stand to gain from increased tariffs on imported goods, as low-cost Chinese EVs are considered the top threat to U.S. EV makers.
