'Not trivial': EV sales could drop nearly 30% if Trump repeals tax credit

The potential repeal of the tax credit poses a significant risk to EV manufacturers, especially for those reliant on incentives to drive sales. Analysts predict that this could lead to price reductions or incentivized discounts in an attempt to maintain customer interest and sales volume.

Tesla, being a dominant player in the EV market, may be affected by a drop in sales due to the loss of the tax credit. However, it could leverage its brand strength to mitigate some losses by offering competitive pricing or enhanced features.

Rivian may face challenges in maintaining its sales momentum without the tax credit, which could lead to a decrease in market confidence and risk its growth trajectory.