Trump's Transition Team Targets EV Tax Credits: A Tesla Advantage?

President-elect Donald Trump's team plans to remove the $7,500 electric vehicle tax credit, potentially affecting U.S. EV transition. Tesla, led by Elon Musk, might see competition weakened. Trump's move benefits oil interests and aims to fund tax cuts. The change could challenge U.S. automakers' EV strategies.

President-elect Donald Trump's transition team is considering the elimination of the $7,500 tax credit for electric-vehicle purchases as part of broader tax reform efforts, according to sources. This move could impact the U.S. shift toward electric vehicles, yet Tesla, the nation's largest EV manufacturer, seems supportive of the measure, according to insiders.

Elon Musk has mentioned that ending the credit might harm Tesla's sales marginally but would heavily disadvantage U.S. EV competitors. Additionally, the action aligns with Trump's campaign promises to reverse Biden's clean-energy policies, strengthening oil and gas interests and redirecting funds to extend upcoming tax cuts.

Tesla stands to benefit from weakened competition and potential regulatory advantages under Trump's administration. However, the proposed policy has drawn criticism from industry stakeholders, highlighting its potential risks to the American auto industry.

(With inputs from agencies.)