Umair Gaines
Former US President Donald Trump has expressed conflicting views on electric vehicles (EVs), pledging support for the industry while also taking actions that could hinder its growth. Trump has proposed policies that would roll back incentives for EVs and relax emissions standards, which could slow the shift towards electrification and increase pollution. However, his administration's auto tariffs appear to have had less of a negative impact on EV maker Tesla, led by Trump supporter Elon Musk, due to the company's largely domestic production and supply chain.
| Characteristics | Values |
|---|---|
| Trump's stance on electric vehicles | Trump has spent years bashing electric vehicles, but has since changed his tune after Musk endorsed him. |
| Trump's auto tariffs | Trump's auto tariffs will hit many companies, but Tesla will be less affected due to its largely domestic production and supply chain. |
| Republican plans for electric vehicles | Republicans plan to scrap federal support for electric vehicles, which could slow EV sales and trigger factory shutdowns and canceled investments. |
| Trump's actions towards electric vehicles | Trump has revoked Biden's executive orders for funding and infrastructure for EVs and frozen funding for building charging stations. |
| Tesla's role | Tesla is the largest American electric vehicle manufacturer and has faced backlash over Musk's affiliation with the Trump administration. |
| Trump's comments on electric vehicles | Trump has made various negative comments about electric vehicles, including that they should "rot in hell" and that "you can't get out of New Hampshire in an electric car." |
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What You'll Learn
Trump's auto tariffs
On March 26, 2025, US President Donald Trump announced a 25% tariff on auto imports, including cars, light trucks, and auto parts. The White House claims that the tariffs will encourage domestic manufacturing, but critics argue that they will drive up prices and hurt the auto industry.
Some companies, like Tesla, are expected to be less affected by the tariffs due to their largely domestic production and supply chain. However, even Tesla imports some parts from other countries, and the company's reputation outside of the US may suffer due to CEO Elon Musk's association with the Trump administration.
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Impact on Tesla
Despite President Donald Trump's history of bashing electric vehicles, he has been supportive of Tesla and its owner, Elon Musk. In March 2025, Trump posed with a red Tesla Model S on the driveway of the White House, stating that he wanted to buy the car as a “show of confidence and support” for Musk. This move was seen as an attempt to help Musk amid Tesla's backlash over the CEO's role in the Trump administration. Trump has also appointed Musk as one of his primary advisers and tasked him with cutting federal spending.
Tesla's largely domestic production and supply chain have shielded it from the worst effects of Trump's auto tariffs. Bernstein analysts noted that Tesla's near-total US sourcing positions it to avoid the pain of tariffs and even gain margin as competitors raise prices. However, Tesla's association with Trump and Musk's involvement with his administration may be weighing on the company's sales outlook outside of the United States.
Trump's policies and sentiments towards electric vehicles have had a complex impact on Tesla. On the one hand, Trump has revoked Biden's executive orders that encouraged the federal government to acquire electric vehicles and provided funding and infrastructure for EVs. This includes freezing funding for building charging stations and reducing electric vehicle incentives. These moves have the potential to delay the widespread adoption of electric vehicles and could negatively affect Tesla's sales and growth, particularly in markets outside the United States.
On the other hand, there have been reports of a proposed $400 million contract for the Trump administration to purchase armored Teslas, specifically the Cybertruck model. This potential purchase has sparked controversy, with some questioning the suitability of the Cybertruck for diplomatic use. The State Department claimed that the plan originated with the Biden administration, but reporting suggests that the actual amount allocated by the previous administration was significantly lower.
Overall, while Tesla may be somewhat insulated from the direct impact of Trump's auto tariffs, the company's reputation and sales, particularly in international markets, could be affected by the negative perception associated with Musk's affiliation with the Trump administration and the administration's overall stance on electric vehicles.
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Trump's executive order
Trump revoked Biden's executive orders that encouraged the federal government to acquire electric vehicles and provided funding and infrastructure for EVs. However, his administration considered a $400 million deal to buy armored Teslas for the State Department, which would be a significant purchase of electric vehicles. This has led to accusations of hypocrisy, especially as Trump has publicly bashed EVs, stating that they should "rot in hell" and that "you can't get out of New Hampshire in an electric car".
Despite this, Trump has also made more positive comments about electric vehicles, stating that "I'm for electric cars. I have to be because Elon endorsed me very strongly". Trump's mixed messages on EVs have caused confusion, with some analysts arguing that his support for Tesla is due to his friendship with Musk, who has become one of his closest advisers.
Trump's auto tariffs have negatively impacted many car companies, but Tesla has been less affected due to its largely domestic production and supply chain. This has led to accusations of favoritism, with Democratic lawmakers critical of Trump's promotion of Tesla despite their own push for electric vehicles.
Overall, Trump's executive order and actions regarding electric vehicles have caused uncertainty in the market. While his administration's policies suggest support for EVs, his own comments and actions have often contradicted this, making it difficult to determine his true position on the technology.
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Biden's electric vehicle policies
While former US President Donald Trump's auto tariffs and plans to scrap federal support for electric vehicles (EVs) threatened to slow down the shift to electric cars, President Joe Biden has set a target to make half of all new vehicles sold in the US electric by 2030. Biden's EV plan includes new vehicle emissions standards that would cut pollution through 2026, with a 10% stringency increase in the 2023 model year.
Biden has called for $174 billion in government spending to boost EVs, including $100 billion in consumer incentives. A bipartisan Senate infrastructure bill also includes $7.5 billion for EV charging stations. However, some policy experts argue that Biden's target will do little to transform the industry and that automaker support could fall apart in the coming years.
Biden's proposed rules, which cover 2023-2026, are expected to be similar to California's 2019 deal with automakers to improve fuel economy by 3.7% annually. The Biden administration's new draft rules for vehicle emissions and efficiency, released by the EPA and the National Highway Traffic Safety Administration, have no penalty for noncompliance. Automakers have emphasized the scale and difficulty of an EV transition, and many car analysts have cautioned that achieving 50% EV sales would depend not just on new incentives but also on stiffer federal regulation developed over several years.
In contrast, Trump's auto tariffs and plans to end federal EV tax credits, weaken tailpipe pollution rules, and slash funding for charging stations threatened to slow EV sales and trigger a wave of factory shutdowns and canceled investments, according to energy policy and auto industry researchers. Trump's policies were expected to delay but not prevent the shift to electric vehicles in the US.
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The future of electric vehicles
Trump has made controversial statements about electric vehicles in the past, often criticising their limitations, such as range and charging times. He has also revoked Biden-era executive orders that supported funding and infrastructure for EVs, including encouraging the federal government to acquire electric vehicles. Despite this, there is evidence of a potential $400 million contract between the Trump administration and Tesla for armoured vehicles, which has caused confusion among security professionals and raised questions about the administration's support for electric vehicles.
The electric vehicle revolution in the United States may be set back by Republican plans to eliminate federal support for EVs. This includes ending tax credits, weakening tailpipe pollution rules, and cutting funding for charging stations. These moves are expected to slow EV sales, trigger factory shutdowns, and increase planet-warming emissions. However, analysts predict that even without government support, electric vehicles will continue to gain popularity and eat away at sales of gas-powered cars, albeit at a slower pace.
The impact of these policy changes is already being felt in the industry, with companies like General Motors, Ford, Nissan, and Volkswagen cutting spending and delaying or cancelling EV releases. Volvo and Mercedes-Benz have even abandoned their plans to transition completely to electric vehicles by 2030. These developments could have far-reaching consequences for the environment and the economy, potentially affecting the US's ability to meet its emissions targets.
Despite his past criticism of electric vehicles, Trump has recently shown support for Tesla, purchasing one of their vehicles and promoting the company and its founder, Elon Musk. This has led to backlash from Democratic lawmakers, who have criticised Trump for his apparent contradiction and sudden embrace of Musk, despite their previous push for electric vehicles. The future of electric vehicles in the United States remains uncertain, with the Trump administration's actions sending mixed signals to both the industry and consumers.
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Frequently asked questions
Yes, Trump opposes electric vehicles. He has signed an executive order to eliminate the Biden administration's electric vehicle policies, which he falsely labelled a "mandate".
The "electric vehicle mandate" is a non-binding goal set by Biden that electric vehicles (EVs) make up half of new car sales by 2030. It also includes a federal exemption that allows California to phase out the sale of gas-powered cars by 2035.
The order will make it easier for automakers to produce more polluting vehicles, and it will be more challenging for the US to meet emissions reduction goals. It will also slow EV sales and trigger a wave of factory shutdowns and cancelled investments.
