Trump might end EV tax credit, open to naming Musk as adviser: Report

Donald Trump, the Republican presidential candidate noted on Monday that he would mull abolishing a USD 7,500 tax credit for EV purchases and is amenable to naming Elon Musk to cabinet or an advisory role, Reuters reported. 

He told the newswire in an interview that “tax credits and tax incentives are not generally a very good thing,” on being inquired about EV credits.

Trump answered in the affirmative on being questioned about naming Tesla chief Elon Musk to an advisory or cabinet role, noting that he was a “brilliant guy, a very smart guy,” and if he (Musk) would do it, Trump certainly would.

Earlier this July, Elon Musk publicly endorsed Trump in the US presidential race. Reuters could not elicit a timely response from Tesla. 

If Trump is elected, he could take measures to undo rules of the Treasury Department that have made it easier for auto firms to make use of the USD 7,500 credit, or could ask the US Congress to fully repeal it, the newswire noted. 

When he was president, Trump sought to repeal the EV tax credit that was then expanded by President Joe Biden in 2022, Reuters noted. 

Trump said he was not taking a ‘final call’ on the EV tax credit. He noted that he was a “big fan of electric cars” and also a fan of gasoline-propelled cars and also hybrids and whatever comes along the way.”

He added that he would rescind the Biden administration rules that will prod automakers to build more EVs and plug-in hybrids to meet stricter emissions standards and said he sees a “much smaller market” for EVs because of cost and battery range issues, Reuters noted. 

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