In a recent interview, former U.S. President Donald Trump, who is running for president again, hinted at the potential discontinuation of the $7,500 tax credit for electric vehicle purchases. He also expressed openness to appointing Elon Musk, CEO of Tesla, to a cabinet or advisory role.
During the interview, Trump stated that he generally finds tax credits and incentives to be ineffective and would consider ending the EV credit. He indicated that he might reverse Treasury Department rules facilitating automakers’ use of the credit or seek congressional repeal. Notably, Trump had previously attempted to eliminate the EV tax credit during his presidency, a move later expanded by President Joe Biden in 2022.
Trump’s comments about Musk suggest a strengthening relationship between the two. Musk recently expressed interest in inviting Trump to visit Tesla’s Giga Texas, highlighting Trump’s support for American manufacturing. However, their partnership is noteworthy given past disagreements over climate change and electric vehicles.
The potential elimination of the EV tax credit and the Trump-Musk alliance have sparked concerns about their impact on the EV industry. Experts believe the situation could significantly affect the future of electric vehicles.
Beyond the EV industry, the House Judiciary Committee’s recent condemnation of the European Union for allegedly trying to intimidate Musk’s social media platform, X, underscores the ongoing tensions surrounding Musk’s ventures and their intersection with political interests.
Tesla’s stock closed at $222.86 on Monday, gaining 3.12% for the day. However, it dipped slightly in after-hours trading. The stock has seen a decline of 10.29% year-to-date.
Trump’s stance on the EV tax credit and his potential alliance with Musk have raised significant questions about the future of electric vehicle policy and the political landscape in the United States.
