The U.S. automotive industry landscape has changed greatly over the last few months. After phasing out the electric vehicle (EV) tax credit, the Trump administration is now easing fuel economy standards. The pivot in U.S. energy policy shouldn't come as a surprise, as President Donald Trump’s stance towards green energy was no secret, and he had talked about ending the (nonexistent) “EV mandate” during his campaign.
Meanwhile, the phasing out of the tax credit is expected to hit U.S. EV adoption rates, and even Tesla (TSLA) CEO Elon Musk sees a “few rough quarters” ahead. While Tesla bulls can still argue that EV deliveries won’t matter much for the company, which is now increasingly a play on physical artificial intelligence (AI) with products like Optimus humanoid and robotaxi. The expiration of the EV tax credit has amplified startup EV companies’ woes.
