How will Donald Trump’s second presidency shape the future of electric vehicles in the United States?
Unfortunately, electric vehicles have become highly politicized, making them vulnerable to change of administration. Trump has energized his base with anti-electric car rhetoric, pledge At the Republican National Convention this year to “end the electric vehicle mandate on day one.” But he’s also said he’s “all in favor of electric vehicles” as long as hybrid and gas-powered options remain, and he’s close to Tesla CEO Elon Musk. (Tesla shares jumped 14% After Trump’s victory).
At this point, we’re not sure what Trump’s personal beliefs are about electric cars, and whether he has enough conviction to follow through on his threats. Instead, Musk rose to political prominence after a period of time Frosty relationship A Biden administration could reinvigorate the national conversation about electric vehicles, boosting their adoption whether Trump likes it or not.
Elon Musk at a town hall in October to support Trump. (Image source: Ryan Collard/Contributor/AFP via Getty Images)
Even without legislative support, the electric car cat is already out of the bag, with a strong base of suburban drivers who love it. Consumers know they are more fun to drive thanks to their quick acceleration and amazing technology. This does not change. Automakers have already made it Millions of dollars investments in factories and product launches, which are needed to compete globally, especially in Europe, where the adoption rate of electric vehicles is three times that of the United States.
Trump may have a hard time undoing an “electric vehicle mandate” because there is no such thing. He may have been referring to the automakers’ emissions targets, which do not ban sales of gas-powered cars. Automakers can achieve the goals using a variety of low- and zero-emission technologies. One emerging option is so-called “EREVs,” or more advanced hybrid vehicles that Ram, Hyundai and Scout will launch in the next two years.
The Biden administration has already eased emissions targets this year, moving them back to 2030, according to Reuters Reports. By then, battery technology could be dramatically improved without American drivers having to compromise on range or cost.
Trump could roll back emissions standards further, vowing to scrap state-level efforts to ban gas vehicle sales after 2035, according to Reuters. Reports. But countries have already begun to curb this phenomenon. Colorado instead chose to target 82% electric vehicles by 2032 instead of 100%.
The Biden administration has already spent billions of dollars on charging infrastructure, battery research and manufacturing as part of a broader drive to create 800000 Manufacturing jobs. Trump could cut further investments, but the seeds have already been planted. In addition, the majority of electric vehicle manufacturing plants funded with assistance from the Biden administration are located in red states, Bloomberg reported Reports. These jobs help Trump’s base.
Trump auto workers in Michigan (Photo by Jeff Kowalski/AFP via Getty Images)
Trump’s main goal will likely be to eliminate the $7,500 federal tax break, which is set to run through 2032. Tens of thousands of Americans use it to save money at dealerships and indirectly through leases. But Vice President-elect J.D. Vance hopes to replace it sooner with a gas-powered car. Musk says canceling it will hurt Tesla a little in the short term, but it will “destroy” its competitors, but I’m not convinced.
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Removing the tax exemption may indirectly lower the prices of electric vehicles by making it easier for manufacturers to source low-cost batteries from China, which would disqualify their vehicles from eligibility for the tax exemption. Tesla has spent much of 2024 trying to regain eligibility for the electric vehicle tax credit by replacing Chinese-made batteries and battery components. Removing the tax break could ease scrutiny of automakers’ Chinese sourcing practices, lower the cost of vehicles, and put more zero-emission vehicles on the road.
But is this worth abandoning the broader mission of competing with China in battery production and technology, which is crucial to America’s future energy independence? China dominates the global battery industry, with huge manufacturing facilities and large-scale mining operations for battery metals abroad. The Economist Reports. America is far behind in this area. Removing political support in these areas will not prevent China from moving forward.
China is Tesla’s biggest competitor, Musk explained to Business Insider Reports. This is not only for American buyers, but also for Europeans Capture Cheap Chinese-made electric cars you can’t buy in America. Ford cited an inability to compete with China as a reason for delaying its electric vehicle plans, despite a statement by CEO Jim Farley. He loves them.
Perhaps he will “compete” with Trump in his own way by raising import tariffs. The Biden administration has already increased tariffs on Chinese-made vehicles and lithium-ion batteries by up to 100% and 25%, respectively. Reports. Trump has not proposed any specific new tariffs related to electric vehicles, only fees that might impact everyone Imported cars and auto components (gas and electric), NBC Reports. This is unlikely to happen given the disastrous effects it would have on the US auto industry.
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About Emily Drebbelbeis-Forlini
Senior correspondent
