Trump cancels US transition to electric cars

Donald Trump is canceling the electric car support programs introduced by Joe Biden. The newly elected 47th US president immediately after taking office began to introduce changes in the automotive industry. In particular, he signed an executive order that cancels the goal of achieving a 50% share of electric vehicles in the market by 2030. It is also planned to stop state funding for the sale of electric cars and the development of charging stations.

Major changes

Trump is expected to eliminate a $7500 federal tax credit for electric vehicle buyers, a subsidy the president says is unfair because it favors one mode of transportation over another.

In addition, a revision of emission standards for cars with gasoline engines is planned, which will give consumers more freedom in choosing their transport.

Funding for charging stations will also be cut. In 2021, former US President Joe Biden allocated $7,5 billion to create a national network of charging stations with the goal of increasing their number to 500 by 2030.

Elon Musk, the Tesla CEO who supports Trump, has said that the elimination of subsidies will have a positive impact on his company. However, JPMorgan analysts predict a possible 40% decline in Tesla's profits, which could spook investors, especially given the company's first annual sales decline in a decade.