Trump wants to roll back Biden’s push for electric cars: Here’s how it will affect consumers

President-elect Trump He is expected to unveil several green initiatives pushed by President Biden upon his return to the White House, including rules aimed at stimulating the production and purchase of electric vehicles.

On the buying side, Trump’s transition team is reportedly already looking to get rid of him Tax credit $7,500 To purchase or lease certain electric vehicles and hybrid models that were passed as part of Biden’s signature inflation-reducing law of 2022.

Eliminating federal subsidies is seen as having the greatest potential impact on consumers who want to purchase an electric vehicle or may be considering purchasing one.

“The goal of the EV tax credit was to make electric vehicles more affordable for the average consumer, and they did just that,” said Scott Kunes, COO of Kunes Auto & RV Group. “We have seen a significant increase in electric vehicle sales and leasing as a direct result of federal tax incentives. Repealing them will once again put these vehicles out of reach of the average consumer.”

EPA gives California permission to ban new gas vehicle sales by 2035

said Sean McLaughlin, CEO of Emporia Energy Fox Business Industry research shows that the majority of current EV owners were motivated to make the switch because it was their way of doing their part to help the environment.

To continue growing EV adoption, he argues, the auto industry needs to attract new, more price-sensitive buyers.

“Retract government support and incentives for Adoption of electric vehicles “This will slow the growth of electric vehicle sales over the next two years by making the current supply of electric vehicles less price competitive,” McLaughlin said.

Car dealership owner on electric vehicles: ‘People can’t afford these vehicles’

However, even if the tax exemption is eliminated, the market will adapt to meet the needs of electric vehicle customers.

“With improvements in battery technology and manufacturing, the unsubsidized cost of EVs will reach ICE parity in 2026-2027, which will begin to attract more cost-sensitive buyers regardless of the federal EV tax credit,” McLaughlin added.

Craig Beller, founder and CEO of EVject, a separate EV charging connector, agrees — but he expects a massive shift in the world of electric vehicles. Automotive industry That would moot the discussion about tax credits for electric vehicles.

“Over the next 10 years, it won’t matter what consumers think about electric vehicles,” Beeler told FOX Business. “It’s the AVs (self-driving vehicles) that win.”

Get FOX Business on the go by clicking here

“With full autonomy, car buyers will no longer be drivers. Fleets will become mainstream,” he predicts. “The majority of travelers will pay for their trips by the mile or minute and will not buy their own car.”