Trump Considers Ending $7,500 EV Tax Credit, Praises Electric Cars

Former President Donald Trump has indicated he might end the $7,500 tax credit for electric vehicle purchases if re-elected, according to a recent Reuters report. This statement came during a campaign event in York, Pennsylvania, where Trump shared his thoughts on EVs and related policies.

Mixed Signals on Electric Vehicles

While Trump expressed skepticism about tax incentives, he also voiced support for electric cars.

“I’m a big fan of electric cars, but I’m a fan of gasoline-propelled cars, and also hybrids and whatever else happens to come along,” Trump told Reuters.

This stance suggests a potential shift in federal EV policy if Trump were to win the 2024 election.

Potential Policy Reversals

Trump’s comments hint at several possible changes to current EV-related policies:

1. Ending the $7,500 EV tax credit
2. Rescinding Biden administration rules promoting EV production
3. Imposing new tariffs on vehicles imported from Mexico

“Tax credits and tax incentives are not generally a very good thing,” Trump stated, though he added, “I’m not making any final decisions on it.”

Elon Musk in a Potential Trump Cabinet?

In an interesting twist, Trump mentioned he would consider tapping Tesla CEO Elon Musk for a cabinet or advisory role “if he would do it.” This comes after Musk publicly endorsed Trump in the U.S. presidential race last month.

Broader Tech Concerns

Beyond EVs, Trump also criticized Google, stating, “They’re almost like the Wild West,” and suggesting the company “going to have to pay a great price.”

However, he declined to specify if he thought the company should be broken up following a recent monopoly ruling.

EVXL’s Take

The potential elimination of the EV tax credit could significantly impact the electric vehicle market in the U.S. As we’ve seen in our recent coverage of Tesla, incentives play a crucial role in driving EV adoption. Any policy changes in this area could have far-reaching effects on automakers and consumers alike.

Trump’s mixed messaging on EVs – praising them while considering the removal of incentives – reflects the complex landscape of vehicle electrification in the U.S. As the political and technological landscapes continue to evolve, it’s clear that the future of EVs will remain a hot-button issue in the upcoming election.

Photo is for illustration purposes only.