Donald Trump’s transition team has proposed dramatic policy changes that would reshape the EV scene in the U.S., according to an exclusive report by Reuters. These recommendations signal a stark departure from the Biden administration’s EV-friendly initiatives and prioritize national security and economic protection over accelerating the EV transition.
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Trump’s Team Has Recommended Cutting EV Support and Imposing Tariffs
The recommendations from Trump’s transition team include ending support for President Biden’s EV incentives and infrastructure. The team suggests clawing back unspent funds from President Biden’s $7.5 billion initiative to build charging stations and redirecting them toward securing U.S. battery materials and critical minerals. It also proposes eliminating the $7,500 EV tax credit for consumers.
Moreover, the recommendations include imposing tariffs on battery materials globally to boost domestic production. These tariffs would then be negotiated for individual exemptions with U.S. allies.
Trump’s Team Is Prioritizing National Defense
Trump’s team has argued that the redirected funds would support the “national defense supply chain and critical infrastructure.” This focus arises from growing concerns over China’s dominance in mining and refining critical minerals like graphite and lithium, which are essential for both EVs and military equipment.
What Are the Implications for Automakers like Tesla?
These policies could deal a blow to EV sales and production in the U.S., affecting automakers such as General Motors (GM), which has recently expanded its EV offerings. Furthermore, slashing government support could hurt Tesla’s (TSLA) U.S. sales. Tesla CEO Elon Musk has stated that ending subsidies would harm its competitors more than the EV giant.
What Are the Best EV Stocks to Buy Right Now?
For investors interested in investing in the EV sector, we have rounded up the EV stocks that analysts are cautiously optimistic about using the TipRanks Stock Comparison tool.
