Report: Trump To Kill Electric Vehicle Tax Credit
President-elect Donald Trump’s transition team is expected to recommend killing the current electric vehicle tax credit program, which is good for up to $7,500 on purchases and leases of certain EVs.
Sources told Reuters that representatives from all-electric brand Tesla have said the company supports ending the program.
Tesla CEO Elon Musk, who is set to lead a Department of Government Efficiency under Trump, has previously said he is against subsidies.
Tesla sold more than 650,000 vehicles in the U.S. in 2023, while Ford was second at just over 72,000.
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The current tax credit applies to purchases of vehicles that are built in North America, not specifically the U.S., and use battery materials from approved free trading partners. Prices thresholds are set at $55,000 for cars and $80,000 for SUVs and trucks.
However, the entire amount is available to any vehicle purchased commercially regardless of price or country of origin and it can also be applied to the leasing of such vehicles.
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The stock prices for Tesla, Rivian and Lucid shares all dropped following the release of the report.
Many automakers, including Hyundai, Kia and Volkswagen have moved EV production to the U.S. in recent months order to have their vehicles qualify for the credit.
General Motors and Ford have both dialed back plans for increasing electric vehicle production in North America this year due to the segment growing at a slower pace than expected and uncertainty about government policy.
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