Trump’s Executive Order and the Future of EVs
President Donald Trump has signed an executive order, signaling a shift in the US approach to electric vehicles (EVs).
His actions could significantly impact the EV market and the country’s efforts to combat climate change.
The order aims to eliminate what Trump inaccurately terms an “electric vehicle mandate” established during the Biden administration.
This move aligns with his campaign promises to reduce the focus on EVs.
What Does the Executive Order Entail?
Trump’s executive order includes provisions to “eliminate the electric vehicle (EV) mandate” and promote consumer choice.
The order seeks to eliminate the non-binding goal set by Biden that EVs make up half of new car sales by 2030.
It also targets a federal exemption allowing California to phase out gasoline-powered car sales by 2035.
This waiver is crucial for California and more than a dozen other states that follow its vehicle emissions standards.
Potential Consequences
Trump’s executive order might include repealing the $7,500 tax credit for new EV purchases.
It could also lead to a rollback of the Environmental Protection Agency rules enacted by Biden, which aimed to tighten emissions limits for vehicles.
Another key aspect is the suspension of billions of dollars in funding for EV charging stations that were allocated through the climate law and the bipartisan infrastructure law.
This action could significantly slow down the expansion of the EV charging infrastructure.
EV Market in the US: Current Status
Despite the increasing interest, EVs still account for a relatively small percentage of new vehicle sales, but the trend is positive.
The cost of EVs is declining as the industry scales up manufacturing, but they remain more expensive upfront than conventional gasoline-powered cars.
Automakers may be receptive to easing emissions standards, but the elimination of federal subsidies could make selling EVs more difficult.
Industry leaders like John Bozzella, president and CEO of the Alliance for Automotive Innovation, suggest a need for a single, national standard to reduce carbon emissions in transportation.
What Happens Next?
Short-term, sales of EVs might increase as consumers try to take advantage of existing tax credits.
However, the order is predicted to make it harder for the US to achieve emissions reduction goals in the long run.
Light-duty cars and trucks account for a major portion of greenhouse gas emissions in the U.S.
This rollback will likely be met with legal challenges from environmental groups.
Trump has cultivated a closer relationship with Tesla CEO Elon Musk, which might influence the future trajectory of EV policies.
