In an interview, he mentioned that tax credits and tax incentives are generally not very beneficial when discussing electric vehicle credits.
Donald Trump, the Republican presidential candidate, expressed on Monday that he is considering eliminating a $7,500 tax credit for electric vehicle (EV) purchases. He also indicated openness to appointing Elon Musk, the CEO of Tesla, to a cabinet or advisory role.
In his conversation with Reuters, Trump criticized tax credits and incentives, specifically those related to EVs, suggesting they are not generally beneficial. He confirmed his positive view of Musk as a potential cabinet member or advisor, describing him as a “brilliant and very smart” individual, and expressed willingness to appoint him if Musk were interested. Earlier in July, Musk publicly supported Trump in the U.S. presidential race.
Should Trump win the election, he might seek to modify or abolish regulations from the Treasury Department that facilitate the use of the $7,500 credit by auto manufacturers, or he could urge Congress to repeal the credit altogether. This stance aligns with his previous efforts to repeal the EV tax credit, which was later expanded by President Joe Biden in 2022.
Trump clarified that he has not made a final decision on the EV tax credit, acknowledging his enthusiasm for electric cars, gasoline vehicles, hybrids, and emerging automotive technologies. He criticized the Biden administration’s policies that encourage automakers to produce more EVs and plug-in hybrids to comply with stricter emission standards. Trump predicted a smaller market for EVs due to cost and battery range concerns, as noted by Reuters.
