Trump Plans to Eliminate EV Incentives, Threatening California Sales

The Trump administration's recent executive order to eliminate federal tax credits for electric vehicle (EV) purchases and cut funding for charging stations could impede the growth of the EV market, particularly in California, which has ambitious goals to phase out gas-powered cars. With California's EV sales stagnating at 25.3% of new car registrations, there are concerns that the state may struggle to meet its targets by 2026. The proposed changes may also disrupt the automotive market, as manufacturers could reduce shipments of gas-powered vehicles to comply with EV sales mandates, potentially driving up prices. Additionally, more than $100 billion in EV manufacturing investments, primarily in Republican-leaning states, are at risk due to potential modifications to the Inflation Reduction Act. Concerns have been raised by industry leaders about uncertainty in the market and the implications for consumers. Overall, these policy shifts could slow the transition to electric vehicles and hinder efforts to combat climate change.