In one of his first acts after taking office, President Trump signed an executive order titled “Unleashing American Energy” that aims to “eliminate” the so-called “electric vehicle mandate” put in place by the Biden administration.
Biden signed an order in 2021 that set “a goal that 50 percent of all new passenger cars and light trucks sold in 2030 be zero-emission vehicles, including battery electric, plug-in hybrid electric, or fuel cell electric vehicles.”
Trump’s order says the new policy will “promote true consumer choice” through “considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies and effectively mandate their purchase by individuals, private businesses, and government entities alike by rendering other types of vehicles unaffordable.”
Regulatory and potentially legislative actions will need to be taken in order to make any concrete changes to fuel economy standards.
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None of the orders signed by Trump on Monday specifically called out the federal tax credits available on electric vehicle purchases, but they could fall under the “unfair subsidies” reference. However, the oder did call for a pause in spending on electric vehicle charging infrastructure and a review of any such programs as they relate to the order’s overall goal of not favoring EVs.
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Plug-in electric vehicle sales reached 1.3 million in the U.S. in 2024, with the Tesla Model Y and Model 3 far and away the best sellers. Tesla CEO Elon Musk, who has an advisory role in the Trump administration, has favored ending the purchase subsidy.
“Take away the subsidies. It will only help Tesla,” Musk posted to X last year.