Upon his return to the White House, Donald Trump marked an abrupt shift in United States environmental policy. The presidential decree signed on Monday aims to slow down the development of electric vehicles, favored by his predecessor Joe Biden, and to bring thermal engines back to the forefront.
This text ends federal subsidies intended for the installation of charging stations for electric vehicles, while considering eliminating the federal tax credit of 7,500 dollars for the purchase of these vehicles. During his inauguration speech, he promised to put an end to the “Green New Deal” and criticized subsidy policies deemed “ineffective” by his administration.
A decision that delights Elon Musk
The consequences of this decision were not long in coming: the shares of several companies specializing in electric vehicles and charging infrastructure, such as Tesla, Rivian and EVgo, fell on the stock market. Tesla, although the leader in the sector, saw its stock market value decline despite the supposed proximity of its CEO, Elon Musk, to the president.
Elon Musk, presented as an ally of Donald Trump, surprised by publicly supporting the elimination of federal subsidies. According to him, this decision could strengthen Tesla by eliminating the dependence of competing manufacturers, such as Ford and General Motors, on this aid. In a statement to Business Insider, he said: “Eliminate subsidies. This will only help Tesla. » However, some observers believe that its association with a climate-skeptical administration could tarnish Tesla's image among environmentally conscious consumers.
Political and industrial reactions
California Governor Gavin Newsom responded by promising state subsidies to compensate for the cut in federal funds. “We will continue to encourage Americans to adopt environmentally friendly transportation solutions,” he said. The Alliance for Automotive Innovation, representing manufacturers, recalled the importance of a single national regulatory framework to reduce greenhouse gas emissions. “We cannot have regulations that push the industry too far ahead of consumers' wishes,” commented John Bozzella, president of the Alliance.
-At the same time, environmental organizations, such as the NRDC, are preparing to challenge the decree in court. Kathy Harris, director of clean vehicles at the organization, accused Donald Trump of seeking to “satisfy the big guys in the oil industry” at the expense of the environment and consumers. “This is not the end of this story. If the government tries to dodge or ignore the law, it will end up in court,” she warned.
Growing sales despite doubts
Despite criticism of weak demand for electric vehicles, the figures show an opposite trend: sales increased by 7.3% in 2024, reaching 1.3 million units according to Kelley Blue Book. This growth is observed in all price ranges, demonstrating growing consumer interest.
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However, several manufacturers had already lowered their ambitions in this sector at the end of 2023, citing an uncertain economic outlook and government incentives considered insufficient. Donald Trump's executive order could exacerbate this trend, slowing investments in the electrification of the American automobile fleet. Furthermore, this decree also requires an examination of the laws on aid for electric vehicles to ensure that they do not disadvantage thermal vehicles. Enough to slow down innovation in the automotive sector and harm the competitiveness of the United States.
