Jan 21, 2025
By Ari Natter and Jennifer A. Dlouhy | Bloomberg President Donald Trump ordered his administration to consider eliminating subsidies and other policies that favor electric vehicles, laying the groundwork for moves that risk slowing adoption of cleaner cars in the US. The directive, included in a broad energy-focused executive order, contains that aid for EVs and other “ill-conceived government-imposed market distortions” effectively mandate their purchase. While the US lacks a hard-and-fast EV mandate at the federal level, recently imposed limits on vehicle tailpipe pollution compel carmakers to sell more electric models . Trump stopped short of explicitly directing the Environmental Protection Agency to review or rewrite those rules, or for the Transportation Department to rework fuel-economy regulations that were also toughened under President Joe Biden. Also see: Rivian, US finalize $6.6. billion loan before Trump retakes office The order does, however, specifically call for terminating waivers that allow states to limit gas-powered car sales, indicating that Trump will look to take over California again on those grounds. The state requires automakers to deliver increasing numbers of zero-emission vehicles every year through 2035, when all new cars sold will need to be zero-emission. Also see: Will California offer rebates on electric vehicles? Trump also directed agencies to pause disbursement of funds appropriated through two laws Biden signed — the Inflation Reduction Act and Infrastructure Investment and Jobs Act — including funding for EV charging stations. The infrastructure law allocated $7.5 billion to building out a network of public plugs across the country. Related: California abandons diesel truck ban before Trump is sworn in Shares of EV makers fell Tuesday as the broader market rose. Tesla Inc. declined 4% as of 10:03 am in New York, while Irvine-based Rivian Automotive slid 7.6%, and Lucid Group Inc. was down 8.5%. Charging companies including EVgo Inc. and Blink Charging Co. also traded lower. While Trump was president-elect, advisers recommended that he repeal federal policies that increase consumer demand for EVs, including the $7,500 federal tax credit for plug-in car purchasers, while still fostering a domestic supply chain to produce clean vehicles. While it would take an act of Congress to fully rescind the consumer rebate, Trump has authority to expand limits on which companies are eligible to receive the rebates, and make other tweaks. A legally ending rule could take months to complete. Related Articles Business | Burning Teslas, fried battery storage systems add to toxic mix hindering LA wildfire cleanup Business | Green Rides: EVs get better mileage in the city, due to regenerative braking Business | Rivian, U.S. finalize $6.6. billion loan before Trump retakes office Business | California abandons diesel truck ban before Trump is sworn in Business | Harbinger Motors in Garden Grove raises $100M to fuel EV truck chassis growth
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