- The Biden-era EV tax credit that President Donald Trump wants to eliminate is benefiting Tesla. The automaker, led by Elon Musk — a special government employee within the Trump administration –– announced that its Cybertruck qualifies for the $7,500 federal incentive.
- While Trump’s transition team had planned to eliminate the credit and his administration issued an executive order against EV subsidies, the federal incentive remains in place since congressional action is required to revoke it.
- As a result, the Cybertruck’s price is reduced to $72,490 from its unsubsidized price of $79,990, and significantly lower than its pre-October 2024 base price of $100,000.
The same Biden-era electric vehicle (EV) policies that President Donald Trump wants to roll back are currently benefiting one of his administration’s most recognizable figures: Tesla CEO and special government employee Elon Musk. This week, Tesla revealed that its Cybertruck now qualifies for the $7,500 federal EV tax credit.
Trump wants the EV tax credit gone, so what’s stopping him?
Before Trump took office, his transition team was reportedly intent on scrapping the $7,500 federal EV tax credit. Upon assuming the presidency, Trump issued an executive order aimed at “the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies.”
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However, despite Trump’s efforts, the federal tax credit can only be revoked through congressional action. Therefore, it remains in place for automakers, including Tesla, to bring down the cost of their vehicles.
How much cheaper does it make Tesla’s Cybertruck?
For consumers, this means a reduction in the Cybertruck’s cost. The vehicle now starts at $72,490, compared to its unsubsidized price of $79,990. Additionally, it is a notable reduction from its pre-October 2024 base price of $100,000.
What happens next?
Musk has previously stated that Tesla does not need the federal tax credit to be profitable and has expressed support for its elimination, suggesting that removing the subsidy could ultimately help his company.
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Auto industry experts believe the long-term benefits Musk is referring to would come as a result of the challenges that competitors who depend on the credit to grow their businesses would face.
THE SAME BIDEN-ERA ELECTRIC VEHICLE POLICIES THAT PRESIDENT DONALD TRUMP WANTS TO ROLLBACK-
ARE ACTUALLY BENEFITING ONE OF HIS ADMINISTRATION’S MOST RECOGNIZABLE FIGURES.
TESLA, LED BY ELON MUSK-
WHO ALSO SERVES AS A SPECIAL GOVERNMENT EMPLOYEE UNDER TRUMP-
REVEALED THIS WEEK THAT ITS CYBERTRUCK NOW QUALIFIES FOR THE FEDERAL EV TAX CREDIT.
PRIOR TO TRUMP’S INAUGURATION, HIS TRANSITION HAD REPORTEDLY BEEN INTENT ON KILLING THIS 7,500 DOLLAR FEDERAL EV INCENTIVE-
AND ONCE IN OFFICE, ONE OF THE FIRST THINGS THE PRESIDENT DID WAS ISSUE AN EXECUTIVE ORDER AIMED AT QUOTE-
“THE ELIMINATION OF UNFAIR SUBSIDIES AND OTHER ILL-CONCEIVED GOVERNMENT-IMPOSED MARKET DISTORTIONS THAT FAVOR EVS OVER OTHER TECHNOLOGIES.”
HOWEVER, THAT CREDIT CANNOT BE REVOKED WITHOUT CONGRESSIONAL ACTION-
AND IT HAS YET TO BE SEEN WHETHER THE TRUMP ADMINISTRATION WILL TAKE CONCRETE STEPS TO ELIMINATE IT.
BUT IN THE MEANTIME, THE FEDERAL INCENTIVE IS STILL AVAILABLE FOR AUTOMAKERS LIKE TESLA TO REDUCE THE CONSUMER COSTS OF THEIR ELECTRIC VEHICLES.
THE CYBERTRUCK NOW STARTS AT 72,490 DOLLARS,
DOWN FROM ITS UNSUBSIDIZED CURRENT PRICE OF 79,990 DOLLARS-
AND A MAJOR DECREASE FROM THE VEHICLE’S PRE-OCTOBER 2024 PRICE DROP COST OF AT LEAST 100,000 DOLLARS.
MUSK STATED PREVIOUSLY THAT TESLA DOES NOT NEED THE CREDIT IN ORDER TO MAKE ITS VEHICLE SALES PROFITABLE-
ADDING HE SUPPORTS ITS ELIMINATION, AND PREDICTED DOING SO COULD ACTUALLY HELP HIS COMPANY IN THE LONG TERM-
LIKELY AS A RESULT OF COMPETITORS BEING UNABLE TO CONTINUE GROWING THEIR BUSINESSES WITHOUT THE SUBSIDY.
THOUGH FOR NOW, UNLESS CONGRESS INTERVENES, THE FEDERAL EV TAX CREDIT WILL REMAIN IN PLACE.
FOR MORE NEWS ABOUT ELECTRIC VEHICLES IN THE U.S., DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME- JACK AYLMER.
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