Trump team puts EV tax credit on the block, Tesla is on board: Report

Ending the tax credit score just isn’t one thing the incoming administration can do through government motion—Congress controls authorities spending, and this may require new laws. However the budget reconciliation process ends in payments that can’t be filibustered, and Reuters says that the Trump transition workforce will seemingly use this route as half of a bigger revamp of tax legal guidelines.

Tesla was a significant beneficiary of the brand new clear car tax credit score; beneath the earlier scheme, an OEM was solely eligible till it offered its 200,000th plug-in car, at which level the credit score accessible to its clients started to sundown. Tesla—which solely sells plug-in autos—was unsurprisingly the first to reach this threshold, at which level its EVs turned dearer than competitor automobiles. However the gross sales cap was eradicated beneath the brand new guidelines.

One may count on the corporate could be up in arms over this proposal. However in line with Reuters, that is not the case—Tesla is in favor of ending the clear car tax credit score, and CEO Elon Musk has beforehand mentioned such a transfer could be much more damaging to rival corporations than to Tesla.