As Biden’s green vision goes uncertain, Trump hits pause on EV charger funding. Will this stall Tesla’s growth? EV expansion hangs in the balance in US.
The Trump administration has suspended a funding programme that provided millions of dollars in federal grants to Tesla, Elon Musk’s electric vehicle (EV) company, for the installation of EV chargers.
A recent memo revealed that the Department for Transport has decided to review the policies of the National Electric Vehicle Infrastructure (NEVI) programme, with new guidance expected in the spring. In the meantime, no new projects can proceed under the programme, putting the plans to expand EV chargers in multiple states on hold.
The shortage of EV chargers continues to be a major barrier for those considering EVs. The suspension of the NEVI programme could slow the adoption of EVs in the US. It may negatively affect Tesla, which has been one of the largest beneficiaries of this funding.
Tesla, which has received $31 million from the NEVI programme, is the third-largest recipient of the funds. The NEVI programme, a central part of former President Joe Biden’s plan, was introduced in 2021 to create a nationwide network of EV chargers.
In contrast, Trump has pledged to reduce the “EV mandate” and cut federal support for electric vehicles. On his first day in office for his second term, he signed an executive order to immediately pause all funding under the NEVI programme.
According to the Economic Times, this action, along with other potential changes, could significantly impact Tesla, the largest EV seller in the US. Reports suggest that Trump’s team may also consider eliminating the $7500 tax incentive for new electric vehicles.
Although Tesla benefits from the tax credit, Elon Musk, a vocal supporter of Trump, has stated that he supports removing the credit. Musk believes that eliminating the incentive could ultimately benefit Tesla, even though it would be detrimental to other competitors in the EV market.
