Tesla Supports Trump's Plan to End EV Tax Credits Source: https://evlife.sg/blog/tesla-supports-trump%27s-plan-to-end-ev-tax-credits In a surprising move, Tesla CEO Elon Musk has expressed support for President-elect Donald Trump's plan to eliminate the $7,500 federal tax credit for electric vehicle (EV) purchases. This decision, which might seem counterintuitive given Tesla's reliance on such incentives, is seen as a strategic move to outmaneuver competitors. Musk believes that while the removal of the tax credit could slightly impact Tesla, it would be devastating for other automakers, thereby strengthening Tesla's market position. "Long term, it probably actually helps Tesla," Musk stated during a recent earnings call. The Trump administration's plan to end the EV tax credit is part of a broader effort to reduce government subsidies, including those for oil and gas. This move aligns with Musk's call to end all government subsidies. Tesla's dominance in the EV market, coupled with its aggressive pricing strategy, has already put significant pressure on competitors. The elimination of the tax credit could further hinder rivals' ability to compete, potentially leading to a consolidation of Tesla's market share. The proposal to end the tax credit will require congressional approval and is expected to face significant opposition from other automakers and environmental advocates.