Reports of stock price declines for Rivian and Tesla, attributed to Mr. Trump's plan to eliminate EV tax deductions.

November 15, 2024 4:01 JST

On the 14th, the stock prices of electric vehicle (EV) manufacturers fell in the US stock market. Reuters reported that President-elect Trump plans to abolish the $7,500 (approximately 1.17 million yen) tax deduction for EV purchases.
Reuters cited two informed sources, reporting that Trump's transition team is discussing the abolition of the EV tax deduction as part of a major tax reform. Tesla is also said to support the abolition.

If the EV tax deduction, one of President Biden's flagship policies, is abolished, it is likely to further slow down the adoption of EVs in the United States, which is already faltering due to high vehicle prices and insufficient charging infrastructure. Trump has stated his intention to overturn Biden's EV preferential policies on his first day in office.
Caroline Leavitt, a spokesperson for the transition team, said, "The American people have chosen Trump's landslide victory and given him the authority to fulfill his promises. Trump is likely to implement them."

Libyan Automotive's stock price temporarily dropped by over 12%. Tesla shares also extended their previous day's 4.8% decline when news of the same report spread.