The U.S. is set to withdraw its support for electric vehicles.

The transition team of Donald Trump, preparing for a potential return to the presidency of the United States, aims to significantly alter the electric vehicle policy. According to a document reviewed by Reuters, it is proposed to halt funding for the production of electric vehicles and charging stations, as well as to strengthen measures to restrict the import of batteries and their components from China.

The team recommends imposing tariffs on battery materials produced globally, with a focus on developing domestic production in the U.S. It is suggested to reallocate the budget that the Biden administration earmarked for building charging stations in favor of national defense, including the development of infrastructure for recycling critical minerals.

Additionally, the document calls for the cancellation of the $7,500 tax credits for electric vehicles, which could significantly impact the electric car market in the U.S. Such a policy could hinder industry growth and adversely affect sales for major manufacturers, including Tesla. However, Elon Musk, who supported Trump in the elections, stated that the removal of subsidies would hit Tesla's competitors harder.

Overall, the proposed measures would represent a radical departure from the Biden administration's approach, which prioritized a swift transition to electric vehicles and independence from Chinese supply chains.