EV Prospects in the US Remain Positive Despite Trump’s Policies

The electric vehicle (EV) industry in the United States is facing a period of uncertainty, but experts believe the long-term outlook remains strong. President Trump’s recent policies have pulled back federal support for EVs, raising concerns about adoption rates and infrastructure growth. Still, industry investments and global demand are expected to keep the momentum going.

One of the biggest shifts came with Trump’s “One Big Beautiful Bill,” which ended the $7,500 tax credit for new EVs and the $4,000 credit for used models on September 30, seven years earlier than planned. EV battery production tax credits will also be cut off by 2028, four years ahead of schedule. Alongside these moves, tighter emissions rules were scrapped, signaling a major change in how the U.S. supports cleaner transportation.

The administration also rolled back key mandates. Trump revoked the Biden-era target for EVs to make up half of all new vehicle sales by 2030 and ordered states to stop using funds from the $5 billion National Electric Vehicle Infrastructure (NEVI) program for charging projects. California’s ambitious plan to ban the sale of new gas-only cars by 2035 was blocked too, a decision that rippled across the 11 states that modeled their policies on California’s.

These moves are already facing legal challenges. California Governor Gavin Newsom has vowed to fight the rollbacks in court, and a federal judge recently ordered the temporary release of NEVI funds to 14 states led by Democratic governors. The legal battles are far from over, and the future of EV funding remains uncertain.

In the short term, these cuts are likely to slow EV growth. Analysts expect EVs to hold an 18.75% market share by 2030, down from earlier forecasts of 24%. New tariffs, including a 25% tax on imported vehicles and a 50% tariff on steel and aluminum, are also raising costs by $2,000 to $4,000 per vehicle.

But despite the setbacks, major automakers are staying the course. Ford is investing $50 billion in EVs and batteries through 2026, and GM has pledged $35 billion through 2025. Foreign brands like Hyundai, BMW, and Volkswagen are also expanding U.S. production, with Hyundai opening a $7.6 billion plant in Georgia.

Experts say global demand and lower ownership costs will keep EV adoption rising. Charging networks may grow slower without federal help, but automaker-backed projects could fill some of the gap.

In short, Trump’s policies may create short-term pain, but the EV industry’s long-term future in the U.S. still looks promising. Entities like Lucid Motors (NASDAQ: LCID) now have to buckle up and take these policy changes in stride as they move to grow their market share in this industry.

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