Trump Transition Team Abolishes IRA Electric Vehicle Subsidy Benefits

Tesla Expresses Support for Subsidy Abolition

The transition team of President-elect Donald Trump is reportedly planning to abolish the subsidy benefit of up to $7,500 provided for electric vehicle purchases under the Inflation Reduction Act (IRA).

On the 14th (local time), major foreign media outlets reported, citing multiple sources, that Trump’s transition team is discussing such a plan.

According to sources, in order to secure the funds necessary for Trump’s tax cut pledge, budget savings through the abolition of the electric vehicle tax credit are needed. The energy policy team, led by Harold Hamm, founder of the oil and gas company Continental Resources, and Doug Burgum, Governor of North Dakota, is discussing this measure.

Tesla, whose CEO is Elon Musk, a close associate of Trump and head of the Office of Management and Budget, has expressed support to the transition team for abolishing the electric vehicle subsidy.

If the second Trump administration abolishes the IRA electric vehicle subsidy, the electric vehicle market is expected to take a direct hit. There are growing concerns that Korean companies, which have significantly increased investment in the U.S. due to the IRA’s implementation providing subsidies for vehicles and batteries produced in the U.S., will suffer considerable damage.