US EV Tax Credit Will Be Eliminated, Trump Transition Team Reportedly Says
The tax credit, which has given back up to $7,500 to eligible EV buyers, may disappear under the new administration.
Tesla is one of many companies likely to be affected by EV tax credit changes.
A tax break for buyers of used or new electric vehicles that has been in place since 2008 could disappear after President-elect Donald Trump takes office.
Reuters and other news outlets report Friday that Trump's transition team has the tax credit in its crosshairs as part of its tax-reform plan. The credit knocks up to $7,500 off the federal income tax bill of purchasers of eligible EVs. Reuters cited multiple insiders in the transition team for its report.
The Trump transition team didn't immediately respond to a request for comment.
While the tax credit, which was renewed and turned into an instant rebate as part of President Joe Biden's energy plan, may affect EV sales, the top electric vehicle may still stand to benefit from the change. Tesla, according to several outlets, could come out ahead of other EV-makers who are already taking a loss on every EV sold. While Tesla may need to cut prices to make up for the tax-credit loss, it would still take less damage than competitors such as General Motors and Rivian.
Tesla CEO Elon Musk has been a supporter of Trump since before the election and was recently appointed to lead a new advisory group called the "Department of Government Efficiency," along with former Republican presidential candidate Vivek Ramaswamy. Musk's satellite company Starlink is also likely to benefit from the CEO's close relationship with the new presidential administration.
