Trump’s proposal to eliminate the federal electric vehicle credit could have severe repercussions for the domestic auto industry.

In a Forbes article, Andrew Leahey explains why eliminating the federal electric vehicle tax credit would be “a huge mistake” and “a major setback for the American automotive industry.”
According to Leahey, removing the tax credit — which he calls “a strategic investment in the future of American industry, innovation, and sustainability” — would put U.S. automakers further behind in the shift to electric vehicles and make them less competitive. “Without comparable support, US automakers face the challenge of both competing with lower-priced foreign EVs and covering the high upfront costs of EV research and development (R&D) —without the benefit of subsidies.”
Leahey explains that the move would only harm U.S. innovation and jobs and allow competitors to gain market share. “By eliminating the EV tax credit, the Trump administration risks pulling the rug out from under domestic EV manufacturers.” It would also limit the growth of “high-quality, future-focused jobs” in the sector.
The only automaker who could stand to benefit from the loss of the tax credit is Tesla, while legacy carmakers like Ford and small companies like Rivian would suffer, leading to fewer options for buyers and less innovation in the industry. For Leahey, “If the goal is to foster a robust American EV marketplace, eliminating the credit is not the answer.”
FULL STORY: Eliminating The Electric Vehicle Tax Credit Would Be A Huge Mistake

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