According to insiders, the transition team of newly-elected US President Donald Trump wants to abolish the tax benefit of up to $7,500 for the purchase of electric vehicles as part of a comprehensive tax reform. And this despite the fact that Elon Musk, the head of the electric car manufacturer Tesla, will play an important role in Trump’s administration.
The plan is currently being discussed by the group, two people familiar with the matter told Reuters on Thursday.
Death knell for mobility transition?
The energy policy transition team meetings will be led by oil billionaire Harold Hamm, the founder of Continental Resources, and North Dakota Governor Doug Burgum. Abolishing the tax break could have major consequences for the already stalled transition to electric cars in the United States.
Musk: This will destroy rivals
Nevertheless, representatives from Tesla – by far the largest seller of electric cars in the US – told a Trump transition committee that they supported the elimination. Tesla CEO ElonMusk, one of Trump’s biggest supporters and the richest person in the world, said earlier this year that while the elimination could hurt Tesla’s sales somewhat, it would devastate its domestic rivals, including long-standing automakers such as General Motors.
The tax credit is one of the key measures of President Joe Biden’s $300 billion-plus IRA subsidy package. With the ambitious financing for e-cars, Biden wanted to ensure that every second new car sold would be electric by 2030.
Trump wants a turnaround for the US
Representatives for the Trump transition administration and Tesla did not immediately respond to requests for comment. The Alliance for Automotive Innovation, a trade group that represents nearly all major automakers besides Tesla, also did not immediately respond.
The alliance urged Congress in an Oct. 15 letter to maintain the EV tax credits, calling them “critical to cementing the U.S. as a global leader in the future of automotive technology and manufacturing.”
Trump pledged before the election to increase U.S. oil production and roll back Biden’s costly clean energy initiatives. In addition to the tax credit for electric cars, this includes subsidies for wind and solar energy and the mass production of hydrogen.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
