Consequences of the Trump Presidency for Volkswagen Group

Investments
,
9

I=2
Trump’s transition team plans to kill the $7,500 BEV subsidy

  • Trump’s transition team plans to kill the $7,500 consumer tax credit for electric vehicles (EVs) as part of the new administration’s broader tax-reform legislation, Reuters reported citing two people familiar with the matter.
  • Tesla has been the main beneficiary of the subsidy but Elon Musk wrote on X yesterday that he is in support of killing them.
  • Musk said in July that killing the subsidy will benefit Tesla in the long-term since it will lower competition in the U.S. market.
  • Volkswagen’s ID.4 has been eligible for the full $7,500 subsidy since it’s manufactured at Chattanooga Plant plant in Tennessee.
  • Around 38,000 units of ID.4 were sold in U.S. in 2023.
1 Like