Summary
- Trump attacked EVs and Biden’s EV policies during the 2024 US presidential campaign
- Musk was against ending all subsidies, stating it would hurt Tesla’s competitors more
- Tesla indicated in their shareholder letter that they expect the EV tax credit to stay
- Repealing the EV tax credit would hurt Tesla
- Tesla’s shareholder letter suggests that the EV tax credit will remain in place.
Article
During the 2024 US presidential campaign, Donald Trump criticized electric vehicles and Joe Biden’s EV policies, particularly focusing on the US EV tax credit. Trump’s executive actions on his first day in office included considerations of eliminating subsidies and market distortions favoring EVs. However, Elon Musk opposed ending all subsidies, stating that losing the EV tax credit would make Tesla vehicles more expensive but would impact competitors more, potentially benefiting Tesla in the long run.
Despite Musk’s stance, there was no indication that he would try to persuade Trump to retain the consumer EV tax credit. The decision to repeal the tax credit would require action from Congress, not just an executive order. In Tesla’s shareholder letter, there are hints that the EV tax credit may remain, as the company mentions the eligibility of the Cybertruck for the IRA consumer tax credit. Additionally, the letter highlights pricing with incentives and expected gas savings, assuming the EV tax credit remains in place.
The inclusion of statements in Tesla’s shareholder letter regarding the EV tax credit is seen as a positive sign for its continuation. This suggests that Tesla is hopeful the tax credit will remain, as indicated by references to the IRA consumer tax credit and the $7,500 Federal Tax Credit for eligible buyers. It is unclear whether Tesla is attempting to make pricing appear more favorable in the short term or genuinely believes the tax credit will not be removed.
Repealing the EV tax credit would have severe consequences for Tesla, as former executives and current sales staff have warned. Despite Elon Musk’s claims during the campaign, advocating for the repeal of the tax credit, the potential removal of the credit could significantly impact Tesla’s sales and competitiveness in the market. The uncertainty surrounding the fate of the EV tax credit remains a point of concern for the electric vehicle industry and its stakeholders.
In light of the potential impact on Tesla and the broader EV market, it is essential to monitor any developments regarding the future of the EV tax credit. The outcome of this issue could significantly influence the adoption of electric vehicles and the advancement of clean transportation technologies. Stakeholders, including policymakers, industry leaders, and consumers, will be closely watching to see how this situation unfolds and whether the tax credit will be retained or repealed by Congress.
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