**Trump's Team Plans to End EV Tax Credit, Tesla Supports Move**

President-elect Donald Trump’s transition team is preparing to terminate the $7,500 consumer tax credit for electric-vehicle purchases as part of a larger tax-reform plan, according to sources familiar with the matter. This potential change could severely hinder the U.S. electric vehicle (EV) market, which is already facing challenges. Surprisingly, representatives from Tesla, the largest seller of EVs in the U.S., have reportedly conveyed their support for ending the subsidy to Trump's transition committee, according to insiders who requested anonymity.

Earlier this year, Elon Musk, CEO of Tesla and one of Trump's significant backers, acknowledged that while discontinuing the subsidy might slightly impact Tesla's sales, it would be devastating for U.S. EV competitors, including traditional automakers like General Motors. The $7,500 tax credit, a central element of President Joe Biden's Inflation Reduction Act (IRA), is currently under review by an energy-policy transition team. This team includes billionaire oil magnate Harold Hamm, founder of Continental Resources, and North Dakota Governor Doug Burgum.

Meetings have taken place since Trump’s election victory on November 5, some of which occurred at Trump’s Florida Mar-a-Lago club, where Musk has been a frequent visitor post-election. Requests for comments from Trump’s transition team and Tesla have yet to receive responses. Similarly, the Alliance for Automotive Innovation, representing nearly all major automakers except Tesla, has not responded. This alliance had, as recently as October 15, called on Congress to maintain the EV tax credits, deeming them crucial for establishing the U.S. as a global leader in automotive technology and manufacturing.

On the campaign trail, Trump had vowed to end Biden’s "EV mandate," albeit without detailing specific strategies. The transition team, focused on energy, acknowledges that some of Biden’s clean-energy policies under the IRA might be difficult to reverse due to the initiation of fund allocations, even in Republican-leaning states where these programs are popular. However, the team views eliminating the consumer EV credit as an achievable target, likely to garner broad support within a Republican-controlled Congress as part of a larger tax-reform effort. The anticipated cost savings from abolishing the credit are intended to help fund the extension of Trump’s extensive tax cuts, which are set to expire early in his tenure.

The broader oil-and-gas industry, along with Harold Hamm, a staunch Trump supporter, strongly advocates for ending EV tax credits. Trump had promised to enhance U.S. oil production and reverse Biden’s clean energy initiatives, which include subsidies for wind, solar power, and large-scale hydrogen production. With Congressional Republicans preparing to address the comprehensive tax measure soon, the energy transition team anticipates using the reconciliation process to bypass the need for Democratic votes, mirroring the strategy Biden employed to pass the IRA.