According to Reuters, the transition team's plan includes eliminating the Consumer tax credit for Electric Autos purchases, imposing tariffs on all Battery materials globally, and withdrawing Biden's support for Electric Autos and charging infrastructure.
The Trump transition team plans to make significant reforms to US Electric Vehicle policy, possibly canceling support for Electric Autos and charging infrastructure.
On the 15th, Reuters reported that the Trump transition team plans to eliminate the $7,500 consumer tax credit for Electric Autos. The team suggested canceling support for Electric Autos and charging infrastructure.
The transition team also suggested imposing tariffs on all Global Battery materials to promote domestic production in the USA and negotiate individual exemptions with allies.
Reducing support for Electric Autos may also impact Tesla's sales. However, Musk indicated that the cancellation of subsidies would affect competitors more than it would Tesla, as he believes Tesla already dominates the market.
The Trump team will revoke Biden's Electric Vehicle and emissions policies, and Tesla is not afraid of policy changes.
The new plan is completely different from the auto subsidy policies in Biden's Inflation Reduction Act. The Biden administration plans to provide tax credits, build charging networks, and incentivize domestic manufacturing to enhance the manufacturing sector and drive the USA's transition to clean Energy.
The Trump transition team plans to reclaim the remaining $7.5 billion earmarked by the Biden administration for building charging stations and redirect it towards Battery mineral processing and "national defense supply chain and critical infrastructure." The document points out that Batteries and related minerals are crucial for defense production, but Electric Autos and charging stations are not.
These policy changes may impact the US Electric Vehicle market, especially now that traditional manufacturers like General Motors are trying to expand their electric vehicle products.
US Energy Secretary Jennifer Granholm warned that eliminating these tax credits would weaken the competitiveness of the USA and potentially allow other countries, especially China, to gain an advantage in the electric vehicle field.
Reducing support for Electric Autos may also impact Tesla's sales. However, Musk indicated that the cancellation of subsidies would affect competitors more than it would Tesla, as he believes Tesla already dominates the market.
According to Cox Automotive, Tesla's electric vehicle sales in the third quarter were slightly less than half of the USA's electric vehicle sales. Sales of electric vehicles from General Motors, Ford, and Hyundai lag significantly behind. However, Tesla's overall competitors in the US electric vehicle market are steadily eroding its market share, with Tesla holding over 80% market share in the first quarter of 2020.
Editor/Somer