Tesla CEO Elon Musk, one of Trump's biggest backers and the world's richest person, said in July that killing the subsidy might slightly hurt Tesla sales but would be "devastating" to its U.S. EV competitors, which include legacy automakers such as General Motors (GM.N)
Trump campaigned on ending Biden's "EV mandate," without spelling out specific targeted policies. The team views the consumer EV credit as an easy target, believing that eliminating it would get broad consensus in a Republican-controlled Congress. Trump could use the cost savings from killing the credit to help pay for the extension of trillions of dollars in tax cuts from his first term that are set to expire soon, the two sources said.
Killing EV tax credits is strongly supported by Hamm, a long-time Trump supporter, along with the broader oil-and-gas industry. Trump promised while campaigning to boost U.S. oil production.
Musk himself pointed out as much in a July earnings call, saying losing the subsidy under Trump would "probably benefit Tesla" in the long term. “Getting rid of the subsidy means that competitors can’t catch up and won’t be able to compete on a cost basis," Mersch said
