Within hours of being sworn into the White House, President Donald Trump signed a sweeping executive order meant to end policies supporting the electric vehicle industry.
“We will revoke the electric vehicle mandate, saving our auto industry and keeping my sacred pledge to our great American autoworkers,” Trump said in his inauguration speech. “In other words, you’ll be able to buy the car of your choice.”
Trump signed an executive order on Monday to eliminate Biden administration rules boosting EVs and instead promote “true consumer choice.” The order calls for eliminating subsidies and other “ill-conceived government-imposed market distortions that favor EVs over other technologies.”
It also calls for terminating state emissions waivers that limit gas vehicle sales. Last month, the Biden Environmental Protection Agency approved a waiver for California’s Advanced Clean Cars II rule, which bans new gas vehicle sales after 2035. Trump will likely look to undo that waiver, setting up the grounds for a future battle in court between California and the administration.
What Trump has termed an “EV mandate” is the EPA’s rule requiring auto manufacturers to reduce greenhouse gas emissions for new light- and medium-duty vehicles starting with model year 2027. The rule is meant to shift automakers to begin selling more electric vehicles. The order did not directly call on the EPA to reverse or rewrite the rule.
The president has also vowed to undo the electric vehicle tax credits in the Inflation Reduction Act.
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Trump’s pick to lead the Department of Government Efficiency, Tesla CEO Elon Musk, has supported eliminating EV tax credits and other industry incentives. Tesla benefits from the credits, but it also would gain a competitive advantage over rivals by having them removed, as other auto companies rely more on the credits to avoid losses.
“Take away the subsidies. It will only help Tesla,” Musk said on X in July. “Also, remove subsidies from all industries!”