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As we all know, Donald Trump is not a fan of electric vehicles. In fact, overall, the Fossil Fuel Party does not want people leaving the gas pump behind and driving electric cars. So, it was also no surprise to those who pay attention to these things that Donald Trump and the Fossil Fuel Party have come into power and decided to remove the EV tax credit, remove the used EV tax credit, and attack the federal government’s and California’s requirements that automaker cut CO2 pollution and fossil fuel use over time.
Of course, these changes haven’t yet been implemented, because it takes time to change this kind of thing. However, the changes are coming soon, and automakers are indicating that they are already changing their plans and expectations accordingly.
Tesla — Rough Quarters Coming
CNBC has rounded up a handful of statements from automakers related to these matters. Starting with the big dog, Tesla, Elon Musk said on the July 23 conference call for shareholders that due to the loss of US incentives, Tesla was in a “weird transition period.” But weird isn’t bad, right? Especially when you helped get the guy in the White House elected. “Does that mean like we could have a few rough quarters? Yeah, we probably could have a few rough quarters,” Musk added. Oh, okay, so that sounds bad. And with Musk’s normally extreme optimism, projecting a few rough quarters is really not a good sign. (Though, apparently, all is fine thanks to robots and AI, as Tesla stock is up 8.14% in the past month.)
Tesla is planning to bring a more affordable model to market, but CFO Vaibhav Taneja added that the ramp-up of that model is now expected to be slower due to the tax credits going away. He also noted that Tesla would be getting less revenue from selling regulatory credits. That’s thanks to the Trump administration deciding that automakers don’t need to reduce their pollution.
Rivian — Robbed
Tesla rose up in good part from selling regulatory credits to traditional automakers. Rivian has been counting on that approach a bit as well, but it’s getting its knees whacked in that regard. “Rivian does not expect to earn any revenue from regulatory tax credits for the rest of 2025, CFO Claire McDonough told analysts during its Tuesday call. As a result, the EV maker brought its outlook for regulatory credit sales down to $160 million for the rest of 2025, from its prior outlook of $300 million.” Furthermore, that means it will not achieve positive cash flow temporarily (let’s hope temporarily).
Ford — Changing Plans
Ford has had to change model plans, money dedicated to EVs, and consumer expectations as a result of the Trump policy changes. “On the company’s July 30 call with analysts, Farley said Ford has had to change its EV spending and capital allocation “pretty massively” as a result of softer U.S. regulations, including by moving out launches and canceling some products,” CNBC writes.
“CFO Sherry House added that as a result of tax credits going away, Ford could possibly pull back some of its EV production from the U.S. into other areas, such as leaning more heavily on Europe or moving into internal combustion engine products.”
Sounds good, right? Only if you’re an oil company or oil-soaked investor (or have been effectively brainwashed by the oil lobby).
GM — EV Slowdown
Unsurprisingly, another big American legacy automaker expects EV uptake to slow down as a result of the policy changes — after a short-term increase in demand from people rushing to buy EVs before the tax credits go away.
“CFO Paul Jacobson said on the company’s July 22 earnings call that General Motors is anticipating headwinds to EV profitability as a result of the government removing incentives.”
Making America more polluted. Brilliant.
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