What to Know About the E.V. Tax Credit That Trump Might Repeal
Published On Jan 16, 2025, 5:01 AM
The newly elected President Donald J. Trump is expected to repeal or reduce the $7,500 federal tax credit for electric vehicles, which has been crucial in increasing the affordability of EVs. This credit has spurred a rise in electric vehicle sales and urged automakers to manufacture these vehicles domestically, reducing dependence on international supply chains for critical battery components. Recent data indicates a 7.3% increase in EV sales, with 1.3 million vehicles sold in 2024, primarily due to this incentive. Changes to the credit could significantly impact the electric vehicle market.
Stock Forecasts
TSLA
Negative
If the tax credit is repealed or scaled back, it could result in a decline in electric vehicle sales, as the affordability of these cars would be compromised. Additionally, this could negatively impact automakers heavily invested in EV production.
F
Positive
Conversely, traditional automotive companies that produce gasoline vehicles may see a positive impact as potential buyers of EVs reconsider their options due to increased costs associated with the lack of tax incentives.
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