Posted on 18 Nov 2024
Donald Trump’s team is reportedly planning to end a $7,500 tax credit for EV buyers when the President-elect takes office next year.
Representatives of EV maker Tesla, whose ceo and co-founder Elon Musk has been appointed to lead Trump’s future Department of Government Efficiency (Doge), support killing the subsidy, Reuters has found.
Part of Section 30D of the Inflation Reduction Act (IRA), the tax credit was introduced by the Biden administration as part of wide-ranging measures to boost the electrification of transport, Kallanish notes.
Trump has historically been vehemently opposed to EVs, but changed his stance after Musk invested an estimated $200 million in his campaign. Experts believe parts of the IRA will be maintained, chiefly as much of the investment has been allocated to Republican states, but the $7,500 30D credit is one of the elements most at risk.
Musk previously stated that losing the subsidy would hurt Tesla only marginally but be “devastating” for its competitors, especially legacy OEMs. Even though cutting IRA credits is “a net negative for Tesla, it should allow the company to gain market share against other EVs,” analysts at RBC Capital Markets say.
The news comes as South Korean conglomerate Hyundai Motor has appointed José Muñoz, the head of the North American arm, as a co-ceo alongside Euisun Chung and Lee Dong-seok.
“José... is ideally suited to lead Hyundai as competitiveness and business uncertainty increases,” comments Hyundai vice chair Jaehoon Chang.
Source:Kallanish
