Gia Automobile News According to Reuters, two sources revealed that the team of the next U.S. President Donald Trump is planning to cancel a $7,500 tax credit for consumers buying electric vehicles as part of broader tax reform legislation.
, Two sources said Trump may save costs by eliminating the electric vehicle tax credit because he plans to extend the expiring trillion-dollar tax cuts early in his term.
Eliminating the electric vehicle tax credit may have serious consequences for the transformation of electric vehicles in the United States.
However, the two sources said representatives of Tesla, by far the largest electric vehicle maker in the United States, had told the Trump Commission they supported eliminating the subsidy.
, Tesla CEO Elon Musk is one of Trump’s biggest supporters.
In July, Musk said that removing electric vehicle subsidies might slightly affect Tesla’s sales, but would be “devastating” to its U.S. electric vehicle competitors, including traditional carmakers such as General Motors.
Currently, global automakers such as General Motors, Ford Motor and Hyundai Motor are still increasing electric vehicle production and are eager to reduce electric vehicle manufacturing costs.
Losing electric vehicle subsidies will make it more difficult for these automakers to become profitable in the electric vehicle business.
, The United Automobile Workers (UAW), which represents workers at Detroit’s three major automakers (but not Tesla), supports the Biden administration’s electric-vehicle friendly policies, including $7,500 electric-vehicle incentives.
Last month, UAW Chairman Shawn Fain slammed Trump’s plan to cancel the electric vehicle tax credit, saying “hundreds of thousands” of auto industry jobs were at stake.
After the above report was released, Tesla’s share price closed down nearly 6% to US$311.18. American electric vehicle manufacturer Rivian’s share price fell 14% to US$10.31. American electric vehicle manufacturer Lucid’s share price fell 5% to US$2.08. South Korean battery manufacturer LG New Energy’s share price fell 10%, while South Korean battery manufacturer Samsung SDI’s share price fell 9.6%. Model Y.
Photo source: Tesla, Trump also promised during his campaign for President of the United States that even if U.S. oil production had hit a record high, he would promote increased production and withdraw Biden’s clean energy plan, including subsidies for wind and solar energy and plans to produce hydrogen energy on a large scale.
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