Trump's EV Tax Credit Repeal and Tesla's Support

President-elect Donald Trump's transition team plans to eliminate the $7,500 electric vehicle (EV) tax credit as part of broader tax reforms, which could significantly impact the U.S. EV market. Tesla, led by CEO Elon Musk, supports ending the subsidy, believing it will hurt competitors like General Motors and Ford more than Tesla, potentially giving Tesla a competitive advantage. The repeal of the tax credit is viewed as a way to fund Trump's tax cuts and aligns with an agenda to boost fossil fuels and roll back Biden's clean-energy policies. This move, however, poses a challenge for other U.S. automakers who depend on the credit to make EVs affordable and competitive, especially against subsidized foreign EVs. Critics argue that removing the credit could disadvantage American automakers globally, as countries like China heavily subsidize their EV industries. Tesla's strategic support for the repeal is seen as a way to maintain profitability while competitors struggle with losses due to reduced production volumes and market share.