Donald Trump ready to sink electric in the USA

According to Reuters, the president-elect wants to backtrack on Biden’s choices. But with Elon Musk as an advisor, will this really be the case?

According to a report cited by Reutersthe president-elect Donald Trump is carrying out a plan to cut funding for the dissemination of electric cars in the United States, allocated by the administration Biden. Among the first concrete moves, the increases in rates have already come into force rates on imports from China of crucial components such as lithium ion batteries, graphite and permanent magnets for electric motors.

In addition, Trump intends to abolish theincentive of 7,500 dollars reserved for motorists who purchase electric vehicles, a provision that risks further slowing down one green transition already in difficulty in the USA, while China proceeds quickly thanks to government subsidies.

Strategic investments and a stop to environmental limits

To counter China’s rise, Trump would be ready to allocate i 7.5 billion dollars intended for the charging infrastructure towards the processing sector rare earths and gods critical minerals. These materials, essential for electric batteriesalso play a key role in the manufacturing sector defensewhich will see a stop to the development of electric military vehicles wanted by Biden.

At the same time, Trump intends to revise the i limits on emissions pollutants for petrol and diesel cars, with an increase in grams of CO2 issued of 25%bringing levels back to 2019 values. This regulatory easing should favor car manufacturers without financial consequences.

The impact on the industry: who wins and who loses

The new policies represent a hard blow for giants like Hyundai e General Motorswhich in recent years have focused heavily on electric, introducing new models on the American market. The situation is different for Tesla: he boss Elon Muskfreshly appointed as co-head of the new “Department for Government Efficiency” together with the billionaire Vivek Ramaswamyhe seems more than satisfied.

Musk, who supported Trump’s candidacy with 250 million dollarsis convinced that the new policies will only strengthen the competitive advantage of Tesla, expanding the gap with the competition. And in fact, even thinking that Trump, having chosen the South African billionaire as his main advisor (and financial supporter), would implement a policy against electric cars goes against common sense. Certainly, as a liberal, he will want to put an end to the policy of incentives, which “drug” the market without bringing real benefits.