Trump’s Executive Order to End E.V. Subsidies Draws Pushback

Published On Jan 21, 2025, 12:22 PM

President Trump has issued executive orders that aim to eliminate subsidies and tax credits for electric vehicle (EV) purchases, which could significantly impact the auto industry. This move is seen as a reversal of the Biden administration's efforts to transition towards electric vehicles. Automakers who have heavily invested in EV technology may face challenges if they scale back their commitments while global competitors continue to innovate. The proposed changes could also prompt legal challenges and pushback from various entities, including environmental activists and some Republicans.

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Stock Forecasts

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F

Negative

The potential elimination of EV incentives could lead to a slowdown in sales for American automakers, particularly those reliant on the incentives to compete with more established EV markets in Europe and China. As such, stocks of major US auto manufacturers like Ford may face downward pressure if investment in EV technology decreases significantly as a result.

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TSLA

Neutral

If the legal challenges against these executive orders prove significant, it may provide some support for the EV sector, keeping investments active in companies like Tesla. Nonetheless, the immediate uncertainty may lead to fluctuations in stock price depending on the legal outcomes and investor reactions.

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