**Trump Administration Targets Electric Vehicle Tax Credit Amid Controversy**

The Trump administration is reportedly planning to eliminate the electric vehicle (EV) tax credits that offer discounts of up to $7,500 on new EVs. This move could significantly impact efforts to shift away from fossil fuels, an important step according to climate advocates. These tax incentives, included in the 2022 Inflation Reduction Act, have been a point of contention for Trump, who has criticized their effectiveness.

According to sources from Trump's transition team, the proposed elimination of the EV credits will be part of a larger tax-reform legislation. Interestingly, Tesla, the market leader in the U.S. EV space, has backed this plan. This is particularly noteworthy given that Tesla's CEO, Elon Musk, has grown close to Trump and has been supportive of his administration.

The proposal to cut these tax credits has garnered mixed reactions on Capitol Hill. Many Republicans have expressed skepticism about EVs, with some confirming that repealing the EV tax credit is a high-priority target. However, the potential repeal of these credits could pose risks, particularly in GOP districts where the credits have spurred significant industry investments, including factories, battery plants, and mineral facilities.

This situation has left prospective EV buyers in a state of uncertainty, wondering whether they should expedite their purchases before the credits disappear. Trump has been vocal about his desire to "terminate" what he calls the Green New Deal, likely referring to the Biden administration’s Inflation Reduction Act, a key piece of climate legislation. However, any rollback of this funding would require congressional action, which is not guaranteed due to the growing popularity of the IRA.

The debate around the EV incentives has reached a boiling point in key battleground states like Michigan, where the auto sector employs over a million people. This issue has become a major talking point, with both parties delivering vastly different messages to the electorate.

Initial reactions from investors suggest that Trump’s stance could derail the advancement and economics of low-carbon energy. While the broader equity markets have surged, shares in various clean energy sectors have notably declined following Trump’s victory and the Republican control of the Senate.