Trump’s transition team discussed ending the $7,500 subsidy. hole. as part of a broader effort for tax reform, Reuters reported, citing anonymous sources with direct knowledge of the matter. As reported by the agency Tesla representatives also support ending the subsidy.
Repealing the subsidy, which is a major component of President Joe Biden’s flagship climate billwould deal a major blow to U.S. EV adoption, which is already slowing due to still high EV prices and unstable charging infrastructure.
Trump will “keep his promises” but…
During the election campaign, Trump repeatedly assured that will reverse Biden’s electric vehicle policy on the first day of his presidency.
Karoline Leavitt, spokeswoman for the Trump transition team, said Americans re-elected President Trump with an overwhelming majority, giving him a mandate to fulfill the promises he made during the campaign. The president-elect “will keep his promises,” she added.
To repeal the Biden bill, Trump would need congressional approval. His transition team found that some of the rules in the bill will be difficult to undoas some programs have already started allocating money, including in Republican-dominated states, Reuters reported.
Shares of electric car manufacturers are falling
The stock market reacted to Reuters’ reports about Trump’s plans with a decline in the share prices of car manufacturers. Of the major electric vehicle manufacturers Rivian Automotive shares suffered the most. The New York Stock Exchange depreciated the shares of the American manufacturer, which has ties to Volkswagen, by 14%, which is the largest decline since February 22. After the announcement, Tesla also reached its lowest level during the day and closed the day with a decline of 5.8%. Shares of automotive giants also fell. General Motors and Ford Motor.
The effects spread to Asia, where battery manufacturer LG Energy Solution fell by 10 percent. at the opening of trade in Seoul.LG Energy supplies batteries to automakers including Tesla and GM. SK Innovation Co., the listed parent company of the battery maker SK On Co., decreased by 8%.
Tesla is ready to eliminate subsidies
About Musk’s assessment US should ‘end all government subsidies, including those for electric vehicles, oil and gas’ X announced on Thursday on his social media page.
Tesla’s CEO said the company would be better prepared to deal with a potential withdrawal of incentives. The billionaire became a member of Trump’s inner circle. Its role is to help the new administration reduce government spending.
