Donald Trump, just reinstalled in the White House, has already declared the end of subsidies for electric vehicles. The 47th President of the United States reaffirms his preference for thermal engines. But what will be the consequences?
Trump: an inauguration speech with oil accents
During his inaugural address as the 47th President of the United States, Donald Trump announced a series of measures aimed at dismantling the environmental policies of his predecessor Joe Biden. Among these, the end of subsidies for electric vehicles (EV) and the abandonment of targets for reducing carbon emissions in the automobile industry. « We will end the Green New Deal and revoke the electric vehicle mandate, saving the auto industry and fulfilling my sacred commitment to America’s auto workers », affirmed the president, promising a return to massive production of thermal cars.
Joe Biden’s mandate had allowed a significant increase in sales of electric vehicles, reaching 1.3 million units in 2024, an increase of 7.3% according to Kelley Blue Book. However, Donald Trump’s announcement risks slowing down this dynamic. Subsidies, including the $7,500 EV tax credit, will be removed, while funding for the installation of 500,000 charging stations by 2030 will be reviewed. These measures could strengthen the position of Tesla, owned by a certain Elon Musk, the undisputed market leader with 49% of sales in the United States, but slow down new entrants and traditional manufacturers in the transition phase.
Electric cars: a divided industry
Automakers face a dilemma. While some, like Tesla, can take advantage of this situation by eliminating their weaker competitors, others, such as Chevrolet or Dodge, see it as an opportunity to slow down their transition to electric. These brands will thus be able to refocus on thermal engines, their preferred area, while delaying the investments necessary to develop zero-emission ranges. Factories supported by already allocated funding, such as that of Rivian in Georgia, will continue their activities, but the brake on new initiatives is very real.
-California Governor Gavin Newsom has promised to maintain state incentives to offset federal losses. At the same time, environmental organizations, such as the NRDC, are preparing legal challenges to challenge these decisions.
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