President-elect Donald Trump’s transition team is planning to get rid of the $7,500 tax credit for EV purchases as part of a broader tax shakeup, Reuters reports. If the credit is removed, the EV transition will likely be hit hard, as prices on numerous models will effectively increase.
Several companies, including Ford Motor Co. and Hyundai Motor Co., have adjusted their plans to ensure that their vehicles qualify for the $7,500 tax credits. In just three months, EV buyers saved $600 million thanks to those credits, the Treasury Department said.