Automakers plead with Trump: don’t kill the EV tax credit

The auto industry is sending an urgent message to President-elect Donald Trump: spare the $7,500 electric vehicle tax credit.

In a November 14th letter to Trump and his transition team, the auto industry’s main lobbying group urges the new administration to preserve incentives for EV buyers and manufacturers that were enacted under President Joe Biden, arguing these policies keep the US competitive globally while also creating “good jobs.”

The Alliance for Automotive Innovation, which represents the Big Three automakers — Ford, General Motors, and Stellantis — as well as foreign car companies that sell in the US, are calling on Trump to “promote stability and predictability in auto-related emissions standards.” But at the same time, the group endorsed “reasonable and achievable emissions regulations,” suggesting that there may be some wiggle room for a partial rollback of Biden’s tailpipe rules.

Of course, expecting that Trump will promote stability and predictability while in office seems woefully optimistic — and perhaps disconnected from reality. Trump has said bluntly many times what he intends to do when he assumes office, and stability and predictability don’t seem like they’re on the menu.

During his campaign, Trump railed against Biden’s policies incentivizing EV purchases, promising to eliminate the “EV mandate” on day one of his presidency. And since his victory, his transition team has discussed how to go about killing the EV tax credit, among other incentives.

Also on the chopping block are newly finalized Environmental Protection Agency rules requiring automakers to slash carbon emissions by 2032, primarily by selling more EVs. This is another way Trump could unravel his predecessor’s environmental legacy, and one that is familiar to him. During his first term, Trump rolled back emissions standards put in place by President Barack Obama — and now appears poised to do it again with Biden’s mandates.

John Bozzella, president and CEO of the alliance, didn’t oppose Biden’s efforts to impose stricter tailpipe rules on automakers, although he did call some of the thresholds “stretch goals.” Now, in his letter to Trump, he is calling for “reasonable and achievable federal and state emissions regulations aligned with current market realities that support a customer’s ability to purchase a vehicle that meets their individual needs.”

That could be viewed in a number of ways. “Stability and predictability” suggests that automakers are tired of EPA standards being rolled back and forward, and used as a political football. But “reasonable and achievable” implies that Bozzella and his member companies are fine with kicking the can down the road and pushing out the deadlines for achieving certain emissions targets. In other words, wiggle room.

Bozzella also endorsed a federal regulatory framework for autonomous vehicles, which has long been elusive in the nation’s capital. Trump’s transition team is reportedly discussing the passage of a regulatory framework that would result in more driverless cars on the road. Tesla CEO Elon Musk, a mega-donor to Trump and self-proclaimed “first buddy,” would stand to benefit enormously from such a move given his intention to sell steering wheel-less and pedal-less Cybercabs in 2026. The US will need a framework for AV deployment if it’s to remain competitive with China, Bozzella said in the letter.

The letter is also notable for its flattery of Trump. Bozzella congratulates him on his victory and professes to agree with him that consumers should be able to choose their own vehicle, playing into the false claim that Biden and Kamala Harris were trying to require Americans to purchase EVs. And he commends him for recognizing and acknowledging the enormous headwinds facing the industry.

All in all, the letter is what you would expect from the industry following Trump’s victory: a plea to be careful when slashing and burning through Biden’s regulatory legacy; a statement of shared values and alignment with Trump’s MAGA ethos and that of his allies; and above all, a lot of flattery.