Trump Team to Kill $7,500 EV Tax Credit; Tesla Supports, Automaker Shares Fall

Nov 14, 2024, 06:03 PM

President-elect Donald Trump's transition team is planning to eliminate the $7,500 federal tax credit for electric vehicle (EV) purchases as part of broader tax-reform legislation, according to sources cited by Reuters. The EV subsidy is viewed by the transition team as an easy target for elimination with broad support in the new Republican Congress. Representatives from Tesla have reportedly expressed support for ending the subsidy, with Elon Musk previously stating that killing the subsidy might slightly hurt Tesla sales but would devastate its U.S. EV competitors. Shares of automakers fell following the news, with Tesla shares down around 5%, Rivian down over 10%, and Ford down 0.2%. The elimination of the tax credit could have significant implications for the U.S. EV market, potentially stalling the transition to electric vehicles.