Trump wants to roll back Biden’s EV push: here’s how it will affect consumers
Boyden Gray PLLC partner Michael Buschbacher discusses concerns about the electric vehicle mandate in The Bottom Line.
President-elect Trump is expected to unveil several green initiatives championed by President Biden upon his return to the White House, including legislation aimed at promoting the production and purchase of electric vehicles (EVs).
On the purchasing side, Trump’s transition team is reportedly already looking to eliminate a $7,500 tax credit for the purchase or lease of certain EV and plug-in hybrid models passed as part of Biden’s signature 2022 Inflation Reduction Act.
President Biden drives an electric Ford F-150 Lightning at the Ford Dearborn Development Center in Dearborn, Michigan on May 18, 2021. (Nicholas Kamm / Getty Images)
Getting rid of government subsidies seems to have the biggest impact on consumers who want to buy an EV or are considering buying one.
“The EV tax credit was intended to make electric vehicles more accessible to the average consumer and they have,” said Scott Kunes, COO of Kunes Auto & RV Group. “We’ve seen EV sales and leases increase dramatically as a direct result of federal tax incentives. Their repeal will once again put those vehicles out of reach for the average consumer.”
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Shawn McLaughlin, CEO of Emporia Energy, told FOX Business that industry research shows that most current EV owners were motivated to make the switch because it was their way of doing their part to help the environment.
A driver plugs in a Tesla electric car for charging at a Tesla Supercharger in Santa Monica, California on May 15, 2024. (Photo by PATRICK T. FALLON/AFP via Getty Images / Getty Images)
He argues that to continue growing EV adoption, the auto industry needs to attract new, more price-sensitive buyers.
“Rewinding government support and incentives for EV adoption will slow EV sales growth over the next few years by making the current supply of EVs less competitive,” McLaughlin said.
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However, even if the tax credit is repealed, the market will adjust to meet the needs of EV customers.
“With improvements in battery technology and manufacturing the unsubsidized cost of EVs will reach the average cost of ICE vehicles by 2026-2027, which will begin to attract more serious buyers without the federal EV tax credit,” McLaughlin said.
Automotive expert Mike Caudill reacts to California’s controversial ordinance to use electric vehicles as police vehicles during an appearance on ‘The Big Money Show.’
Kreg Peeler, co-founder and CEO of EVject, a decentralized EV charging connector, agrees — but predicts a big shift in the auto industry that will end the discussion of EV debt.
“In the next 10 years, it won’t matter what consumers think about EVs,” Peeler told FOX Business. “It’s AVs (autonomous vehicles) that are winning.”
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“As total autonomy emerges, car buyers will no longer be drivers. Fleets will become the norm,” he predicted. “Most commuters will pay for their rides by the mile or by the minute and won’t buy their own car.”
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