Trump transition team has fleshed out its plan to destroy the US EV market
The Trump transition team has fleshed out its plan to slash electric vehicle incentives and funding, which would result in a significant slowdown of the US EV market.
The US EV market is already lagging way behind the rest of the world at roughly 9% of new cars, which is less than half the rate of China and most European markets.
And yet, during the elections, Trump has vowed to slow down electric vehicles in the US by slashing the incentives put in place to compensate for the impact on the environment that their fossil fuel-powered alternatives have.
Trump said that he would kill the $7,500 federal tax credit for electric vehicles and cut funding for electric vehicle production and charging stations. He also vowed to kill the non-existent “Joe Biden EV mandate.”
Reuters has been obtaining documents from the Trump transition team and releasing reports based on them. They have now obtained some about their plans for electric vehicles.
Trump reportedly is now looking to cut the tax credit, the federal funding for the charging stations, and move it to secure battery materials:
Incoming U.S. President Donald Trump’s transition team is recommending sweeping changes to cut off support for electric vehicles and charging stations and to strengthen measures blocking cars, components and battery materials from China, according to a document seen by Reuters.
A lot of the $7.5 billion funds for charging stations has already been allocated, and it could prove difficult to divert it to other projects.
The documents make the battery materials a “national-defense issue”:
Taken together, the recommendations are a stark departure from Biden administration policy, which sought to balance encouraging a domestic battery supply chain, separate from China, with a rapid EV transition. The transition-team plan would redirect money now flowing to building charging stations and making EVs affordable into national-defense priorities, including securing China-free supplies of batteries and the critical minerals to build them.
The Trump transition team also plans to put tariffs on parts and battery materials in all countries and then negotiate exemptions with allies.
Electrek’s Take
This will undoubtedly result in a slowdown in EV sales in the US and let the market fall even further behind the rest of the world.
I guess the small silver lining is that some of the money that was going to charging stations would go to battery materials instead, but I think US battery material projects would benefit more from a strong domestic EV market than from whatever Trump can divert from the charging station fund.
While I was traveling in Europe last month, a Swedish auto journalist interviewed me about the impact Trump could have on the US EV market, and his questions allowed me to explain my views in detail.
If that sort of thing interests you, I’d recommend watching:
At the end, I do explain that I would agree with removing the EV incentives as long as it means that we properly represent the cost of fossil fuel-powered vehicles.
But that’s not what is happening. In fact, the incoming vice president even suggested adding a $7,500 incentive on gas-powered vehicles.
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After several months of waiting, Lucid Air drivers now have access to Android Auto. Lucid (LCID) launched the popular feature through a software update this week.
Lucid Air owners gain access to Android Auto
Lucid promised it was coming, and now it’s finally here. “Android Auto is one of the most requested features,” according to Lucid’s head of software engineering, Dr Jean-Philippe Gauthier.
All Lucid Air vehicles now have access to Android Auto Smart Driving Companion through an OTA software update (Lucid OS 2.7.0).
You can now view Android apps, messages, and other media on Lucid’s massive 34″ Air Glass Cockpit. For those with Android 11 or higher, you can connect to Android Auto wirelessly. Those with Android 9.0 or higher will require a USB cable.
Lucid said it would launch the popular feature late last year, but it’s just beginning to roll out to Air owners this week. The company website says the Gravity SUV “will support both wireless Apple CarPlay and Android Auto,” but no further specifics are mentioned.
The 2025 Lucid Air is the “world’s most efficient car” with over 420 miles of EPA-estimated driving range. It also boasts the highest MPGe of any EV at 146 MPGe.
After resuming Gravity deliveries in April, Lucid is quickly ramping up production of its first electric SUV. Lucid expects to produce 20,000 vehicles this year, more than double the 9,000 it made last year.
The Lucid Gravity GT is now available for sale at $94,900, boasting an impressive range of up to 450 miles. Later this year, Lucid will launch the lower-priced Touring trim, starting at $79,900.
After launching its largest discounts to date earlier this month, Lucid is currently offering over $30,000 off select 2025 Air models.
Looking to test one out for yourself? You can use our links below to find current deals on the Lucid Air and Gravity near you.
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Another entry-level electric car is on the way. The Honda Super EV Concept may look a bit funky, but it could be the automaker’s next big hit at an affordable price.
Is Honda launching an affordable EV?
We will get our first full look at the funky new Super EV Concept at the 2025 Goodwood Festival of Speed in West Sussex, England, next month.
The concept will make its global debut during the event, previewing a “new, small-size” electric vehicle. Despite its compact size, the company promises that it will be fun to drive, with an experience that is “unique to Honda.”
Designed as an A-segment electric SUV, Honda says the affordable EV offers an “uplifting, heart-pounding driving experience.”
The company is already testing prototypes in the UK. Although Honda confirmed plans to launch a production model in the future, it didn’t specify a date or offer any other technical details.
Honda will also use the event to hold the European premiere of the electric 0 Series SUV. Earlier this year, we got a look at the upcoming electric SUV (also a bit funky looking) after a prototype was showcased at a Formula One event in Tokyo.
You can see Honda is using the same purple camouflage used for the 0 Series electric SUV to disguise it. The Super EV Concept looks like a futuristic successor to the Honda e. However, with a new EV platform, batteries, and motor, Honda’s new models look to be a significant upgrade.
The new EV SUV will be one of seven new electric vehicles Honda plans to launch by 2030. A production version of the Super EV concept is expected to join it.
The new Super EV Concept will make its official debut, climbing the 1.16-mile (1.856 km) hill course at Goodwood FOS, which runs from July 10 to July 13.
Will Honda launch its new entry-level EV in the US? According to a Nikkei report earlier this year, Honda plans to launch an affordable EV, priced under $30,000 in the US, following the 0 Series electric SUV and sedan.
We’ll have to wait until closer to launch for confirmation. Check back soon for more info. We’ll keep you updated with the latest.
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Tesla (TSLA) has reportedly told employees that it will pause production at Gigafactory Texas, where it produces Model Y and Cybertruck vehicles, for the second time in as many months.
In late May, Tesla extended a long weekend into a week-long production shutdown at Gigafactory Texas.
The move came amid lower demand and inventory buildups.
We reported earlier today that Tesla has to rent out empty parking lots around the US to use as overflow lots for its extra inventory.
Now, Tesla told employees that it is again shutting down Model Y and Cybertruck production at Gigafactory Texas over the first week of July.
With the Fourth of July being a Friday this year, it was going to be a long weekend, but Tesla again decided to extend the production shutdown from June 30th through the following week, according to employees talking to Business Insider.
Tesla claimed that it will enable the company to perform “maintenance and improvements on production lines.” Employees are being offered paid time off or to come in for training.
As we have previously reported, Tesla has been throttling down production of the Cybertruck in 2025 as sales are currently tracking about half of last year.
That’s despite having launched cheaper versions of the electric truck, gaining access to the federal tax credit for the Cybertruck, and offering bigger discounts and incentives.
Tesla reported a 13% decrease in deliveries in Q1 2025 compared to the same period last year, which the automaker attributed to its Model Y design changeover reducing production.
However, Tesla’s deliveries are currently tracking to be down even more in the second quarter compared to last year, despite Tesla having ramped up production.
Electrek’s Take
What’s going to be the excuse this quarter? As I reported earlier today, Tesla is currently tracking to deliver 355,000-360,000 units in Q2, which would be down 19-20% compared to 2024.
It would be an even steeper decline even with the new Model Y.
It clearly wasn’t the problem.
The automaker had already reduced its production capacity at most factories in 2024, when it ran at about 60% capacity due to lower demand.
Now, Tesla is stopping production of its best-selling Model Y with the new design twice in two months?
This is not looking good.
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