Cancellation of electric vehicle funding programs in US: strengthening autonomy from Chinese resources and creating a new technological lead for American companies

On January 20, 2025, the day of his inauguration, US President Donald Trump signed an executive order to cancel electric vehicle promotion programs, formalizing plans to block all incentives for the purchase of electric vehicles in the United States.

Despite the fact that 87% of electric car buyers depended on incentives in 2024, Elon Musk, a major player in the US electric car market, spoke in support of this decision.

One justification for Musk’s position is that the abolition of tax incentives will disproportionately affect newer, lesser-known automakers, potentially strengthening Tesla’s dominant position in the market.