Based on the common principles of supply and demand, President Donald Trump's decision to end the federal electric vehicle tax credit on Sept. 30 should have represented a boon for the oil industry. After all, with fewer incentives available — combined with the many inconveniences of EV ownership, such as the hit-or-miss reliability of public charging stations — there's far less motivation right now to consider making the switch.
Interestingly, though, Deepwater Asset Management‘s investor Gene Munster believes that EV manufacturers like Tesla Inc. (NASDAQ:TSLA) would benefit from anti-EV measures like the end of the tax credit, particularly because it would discourage legacy automakers from aggressively pivoting toward the sector. As such, the current leaders in the space may continue to enjoy a scale advantage. Still, this argument hasn't really panned out as predicted.
