Tesla supports killing $7,500 EV tax credit – going directly against its mission
Tesla reportedly supports the Trump administration’s plan to kill the $7,500 federal tax credit for electric vehicles – something in direct contradiction to Tesla’s original mission to accelerate the entire industry’s transition to electric transport.
Elon Musk, who has both financed and “fully endorsed” Donald Trump, has walked back much of his prior messaging around the need to accelerate the transport and energy sector’s transition to sustainability to address climate change.
In fact, during Trump’s prior administration, Musk was part of his “business council”, but he resigned after Trump pulled the US out of the Paris climate agreement.
Musk has now made it clear that he believes the “woke mind virus” is a bigger threat to humanity than climate change.
The CEO even supported Trump when he said he plans to remove the $7,500 tax credit for electric vehicles once he is back in power. That’s despite Tesla having lobbied for the credit. The incentive has been supporting Tesla’s sales in the US over the last few years.
Musk even laid out a scenario where removing the tax credit would hurt Tesla, but he believes it would hurt other automakers more – removing some of the competition. That’s a direct contradiction to what Musk has said many times in the past, which is to encourage the entire auto industry to go electric.
Even more recently, the CEO has complained that the main problem with EV adoption is the cost being to high – something that the tax credit is directly addressing in the US.
Tesla now supports removing the tax credit
These days, it’s hard to separate Musk and Tesla. Even though he is technically only CEO and minority shareholder, it is widely believed that he controls the board, and, therefore, he is able to do anything unchecked at Tesla.
This is actually what led to the judge’s decision in his CEO compensation case earlier this year.
Now, Musk’s position on the tax credit that Tesla lobbied hard for is also Tesla’s position.
According to a new Reuters report, Trump’s transition team is reportedly already strategizing about how to remove the EV tax credit:
President-elect Donald Trump’s transition team is planning to kill the $7,500 consumer tax credit for electric-vehicle purchases as part of broader tax-reform legislation, two sources with direct knowledge of the matter told Reuters.
The report states the energy transition team is led by Harold Hamm, an oil billionaire, but that they have consulted with Tesla, which is reportedly backing the move:
Ending the tax credit could have grave implications for an already stalling U.S. EV transition. And yet representatives of Tesla – by far the nation’s largest EV seller – have told a Trump-transition committee they support ending the subsidy, said the two sources, who spoke on condition of anonymity.
The Trump administration would have to get Congress’s approval to remove the EV incentive.
Electrek’s Take
Like I wrote in my post about selling my Tesla position, the main reason I can’t be involved with Tesla anymore is that it is moving away from its mission.
There’s no better example than this.
Elon is willing to slow down the entire US EV industry as long as Tesla can come out on top in the next few years.
A source familiar with Tesla’s policy team suggested that it could be a negotiating strategy. Tesla may know it can’t save the tax credit so it is agreeing with Trump in order to have a bit more credibility on other matters, like the battery production credits that Tesla has been enjoying under Biden’s IRA.
But that could be a stretch, and in my opinion, it is not worth supporting something that will undoubtedly result in lower EV sales in the US, a country already way behind the rest of the world in EV adoption.
Also, it’s fair to note that this move should help Tesla in Q4 as the threat of removing the tax credit is resulted in surges in sales in the past to take advantage of it before it goes away.
It comes as Tesla is trying to achieve record sales in Q4 in order not to be down in deliveries for the entire year.
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Oil prices fell sharply Tuesday after President Donald Trump said China can keep buying oil from Iran, a sign that the U.S. is easing its maximum pressure campaign on the Islamic Republic in the wake of a ceasefire with Israel.
Global benchmark Brent fell $3.33, or 4.66%, to $68.15 per barrel by 10:18 a.m. ET. U.S. crude oil was last down $3.18, or 4.64%, to $65.33 a barrel. Prices closed 7% lower on Monday as the oil market bet that the conflict in the Middle East was winding down.
“China can now continue to purchase Oil from Iran,” Trump said in a post on his social media platform Truth Social. “Hopefully, they will be purchasing plenty from the U.S., also. It was my Great Honor to make this happen!”
Trump threatened in May to bar any country buying Iranian oil from doing business with the U.S. China purchases the vast majority of the 1.7 million barrels per day that Iran typically exports, according to data from Kpler.
Oil prices have tumbled to levels last seen before Israel started bombing Iran on June 13, as investors now believe the risk is low that a major supply disruption will occur the Middle East.
The U.S. decision to join Israel’s campaign and bomb three key nuclear sites in Iran over the weekend initially triggered fears that Tehran might try to choke off oil exports from the Persian Gulf in retaliation.
Instead, Tehran launched a missile attack on a U.S. airbase in Qatar that left no casualties, providing an offramp from further escalation. Trump announced a ceasefire agreement between Israel and Iran shortly afterward.
The ceasefire teetered on the brink of collapse early Tuesday as Trump accused both Iran and Israel of violating the agreement shortly after it went into effect. The president demanded that Jerusalem and Tehran adhere to the ceasefire, reserving unusually harsh words for Israel.
“I’m not happy with Israel,” Trump told reporters en route to a NATO summit in the Netherlands. “I’m not happy with Iran either but I’m really unhappy if Israel” continues its bombing campaign Tuesday.
Throughout the conflict, traders feared that Israel might target the 3.3 million bpd of crude oil that Iran produces, or that the Islamic Republic might lash out by targeting energy infrastructure in the Gulf nations, including Iraq.
Investors also watched if Iran would try to close the Strait of Hormuz linking the Persian Gulf and the Gulf of Oman. The strait, used to transport 20% of the world’s crude, is a key route for Iranian and other Middle Eastern shipments, including Saudi Arabia, the world’s largest oil exporter, the United Arab Emirates, Iraq, Kuwait and Bahrain.
Toyota is still planning to build a three-row electric SUV in the US, but it won’t be in Indiana as planned. In a sudden shift of plans, Toyota will build it alongside a second electric three-row SUV as it consolidates EV production in the US.
Toyota to build two new three-row EV SUVs in the US
It has been over two years now since Toyota first unveiled the three-row electric SUV, which was expected to be a key part of its comeback efforts in the US EV market.
After funneling another $1.4 billion into its Princeton, Indiana, manufacturing plant last April, Toyota said it was preparing to assemble the larger SUV at the facility. The investment was also expected to go toward an assembly line for lithium-ion batteries, supplied from its new EV battery plant in North Carolina.
As part of its efforts to streamline production in the US, Toyota now plans to build the new EV in Kentucky, alongside a new Subaru three-row electric SUV.
According to AutoNews, Toyota said the move is designed to “improve manufacturing efficiencies and better serve customers based on market demand.”
“As previously announced, Toyota plans to produce two all-new, three-row battery electric SUVs in the US. Toyota will now assemble both vehicles at Toyota Kentucky,” the company explained in a statement.
Toyota plans to ramp up Grand Highlander production in Indiana with a new assembly line dedicated to the larger SUV.
Last year, Grand Highlander sales increased by nearly 50% in the US, as demand for the smaller Highlander fell by 47%. The trend has continued this year, with Grand Highlander sales up 2% through March, while Highlander sales have declined 62.5%.
Despite consolidating production, Toyota still has several new EVs set to launch in the US soon. Its updated bZ electric SUV (previously named the bZ4X) is arriving at US dealerships later this year.
Toyota upgraded it with an increased driving range, a much better style, and an added NACS port, allowing you to recharge at Tesla Superchargers.
Next year, the smaller Toyota C-HR and off-road bZ Woodland electric SUVs will arrive. By mid-2027, Toyota plans to have seven EVs at US dealerships, including under the Lexus brand. Subaru is set to introduce three new EVs by 2026, including the new Trailseeker SUV.
Toyota also announced plans to raise vehicle prices in the US this week. The price hikes will impact Toyota and Lexus brand models built after July 1.
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A new electric hub motor just dropped at Eurobike 2025, and it’s a big deal – mainly because it’s so small. Developed through a partnership between Moving Magnet Technologies (MMT), Swiss mechatronics firm Sonceboz, and French e-bike software company eBikeLabs, the new motor aims to set a new benchmark for premium urban e-bikes.
And based on the specs alone, it just might.
The motor delivers up to 70 Nm of torque, allows for regenerative braking, and has an impressive 22:1 gear ratio. It also includes a built-in torque sensor, allowing e-bikes employing the motor to take advantage of a more natural, responsive pedaling response.
Despite the high torque rating and built-in tech, the motor weighs under 2.5 kg (5.5 lbs), which is incredibly light for a high-torque hub motor, especially one designed for urban performance and connected tech features.
Designed for single-speed e-bikes and fully integrated with eBikeLabs’ eBikeOS software platform, this is the kind of system that manufacturers building the next wave of sleek, minimalist city e-bikes are likey to seek. And with regenerative braking, anti-theft immobilization, and smart ride customization all built in, it’s a feature-rich package in a surprisingly compact form factor.
Sonceboz, known for zero-defect manufacturing in the automotive world, is leading the industrialization process at its automated Swiss production facilities. According to the team, the motor is currently in B-sample testing with a yet-unnamed premium urban bike brand, with commercial availability targeted for early 2027.
“With this hub motor, Sonceboz, MMT, and eBikeLabs aim to set a new benchmark for premium urban bikes,” said Damien Wittwer, Division Director at Sonceboz. “Our mechatronics expertise ensures high-quality, reliable production ready for the most demanding brands. We don’t just build motors—we empower you to stand out in a market that demands smarter, quieter, more integrated urban mobility.”
The collaboration makes sense. MMT brings the motor design and electromagnetic magic, Sonceboz brings the industrial firepower, and eBikeLabs provides the software layer, eBikeOS, which adds real-time diagnostics, theft alerts, ride tracking, and personalized performance tuning. The system also includes a modular SP Connect mount for phones, allowing full app integration during rides.
On a personal note, I previously tested eBikeOS from eBikeLabs on a sample bike at Micromobility Europe and came away quite impressed with the performance.
This isn’t the first time eBikeLabs has pushed into the high-end e-bike space. Their software already powers the Virvolt 2000 motor used by Shwette’s cargo e-bikes, and their partnership network includes brands like Cowboy and Vefaa. But the new motor signals a tighter integration of motor hardware and software, engineered together from day one, a rarity in the increasingly fragmented e-bike market.
If the specs hold up and the industrial ramp goes smoothly, this could be one of the most important new components in the premium city e-bike world over the next few years. With anti-theft tech baked in, seamless app integration, and impressive torque in a tiny package, it’s exactly the kind of invisible innovation that makes a good e-bike feel like magic.
And if you’re at Eurobike this week, it’s on display in two locations, both in Hall 8, Booth I21 (with Sonceboz) and Hall 12.1, Booth A21 (with eBikeLabs). Definitely worth a closer look.
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