Will President-elect Donald Trump kill the electric vehicle market? Reuters reported on November 14 that Trump and his transition team are planning to put the kibosh on the Inflation Reduction Act’s $7,500 consumer tax credit for EV purchases. The newswire, citing two sources close to the situation, says this effort to eliminate the government subsidy will be part of a broader tax reform initiative. As the EV market continues to struggle – aside from Elon Musk’s Tesla Motors, of course – is it time to deliver the industry’s last rites?
Who Killed the Electric Vehicle?
Over the past year, there have been indicators that the electric vehicle market might be struggling despite the billions of dollars in federal and state subsidies. It comes down to one fact: Consumer demand is not there. At least, that is what one of the biggest car brands in the world is saying.
Speaking at a virtual media roundtable event on November 8, Jack Hollis, the chief operating officer of Toyota Motor North America, stated that the government’s electric vehicle mandates are “impossible” to meet. He referenced California’s “Advanced Clean Cars II” regulations, which force 35% of 2026 model-year automobiles to be zero-emission vehicles. The California Air Resources Board suggests that 12 states and Washington, DC, have implemented such rules. Other states have similar regulations but with a 2027 starting date.
And, yes, one glance at the calendar suggests these cars will be rolled out quite soon.
“I have not seen a forecast by anyone … government or private, anywhere that has told us that that number is achievable. At this point, it looks impossible,” Hollis said. “Demand isn’t there. It’s going to limit a customer’s choice of the vehicles they want.” […]
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