President-elect Trump's expected actions regarding green initiatives and electric vehicles have sparked significant discussions. In this article, we explore the concerns and potential shifts in the EV market with insights from Boyden Gray PLLC partner Michael Buschbacher.

Unraveling the Future of Electric Vehicles under Trump's Reign

President-elect Trump's Stance on Green Initiatives

President-elect Trump is anticipated to reverse many of the green initiatives put in place by President Biden. This includes rules aimed at promoting the production and purchase of electric vehicles. The potential scrapping of the $7,500 tax credit for certain EV and plug-in hybrid models is a key aspect. As seen with President Biden driving the electric Ford F-150 Lightning, these initiatives have had an impact on the market.There is a growing expectation that when Trump returns to the White House, he will take steps to unwind these policies. This has led to concerns among industry players and consumers alike.

The Impact on EV Purchasers

The EV tax credit was designed to make electric vehicles more affordable for the average consumer. And it has achieved that goal, as seen with the significant increase in EV sales and leases. Scott Kunes, COO of Kunes Auto & RV Group, emphasizes this point. He states that without the federal subsidy, those vehicles may once again become out of reach for the average consumer.For example, many current EV owners were motivated to make the switch as a way to contribute to the environment. But if the tax credit is repealed, it could slow down the growth of EV sales in the next couple of years.

Battery Technology and Cost Parity

Despite the potential setback of a tax credit scrapping, there is hope for the EV market. With improvements in battery technology and manufacturing, the unsubsidized cost of EVs is expected to reach cost parity with internal combustion engine (ICE) vehicles by 2026-2027. This will start attracting more price-sensitive buyers.Shawn McLaughlin, CEO of Emporia Energy, highlights this aspect. He argues that continued EV adoption growth requires attracting new buyers who are more price-conscious. A rollback in government support could slow down this growth.

The Future of Autonomous Vehicles

Kreg Peeler, the founder and CEO of EVject, believes that in the next 10 years, it won't matter what consumers think of EVs. It will be autonomous vehicles (AVs) that win. As full autonomy rolls out, car buyers will no longer be the drivers. Fleets will become mainstream, and the majority of travelers will pay for rides per mile or minute rather than purchasing a vehicle.This shift in the auto industry could make the discussion over EV tax credits less relevant. It presents a new perspective on the future of transportation.