Oct 10, 2024
It’s no secret that former President Donald Trump holds Tesla CEO Elon Musk in high regard, especially after Musk offered him a glowing endorsement.
However, that admiration doesn’t mean Trump will ease America's transition from gasoline-powered cars to electric vehicles — the very market Tesla dominates.
Advertisement
During a campaign rally in Warren, Michigan, Trump voiced his dissatisfaction with America’s EV mandate.
“Look, they have an electric mandate. ‘Every car is going to be electric,’ they say. I will terminate that,” he declared.
In 2021, President Joe Biden set a goal for half of all new cars and trucks sold by 2030 to be zero-emission. Earlier this year, the Biden administration reinforced that commitment, as the Environmental Protection Agency (EPA) introduced new tailpipe pollution limits.
The regulation increasingly tightens allowable emissions, and the EPA projects that, under the new rule, the auto industry could meet these standards if 56% of new vehicle sales are battery EVs by 2032, with another 13% being plug-in hybrids. However, the House of Representatives recently voted to support a resolution seeking to overturn the EPA's vehicle emissions rule.
Despite his opposition to the EV mandate, Trump didn’t shy away from praising Musk and his company before making his stance clear.
“You have to understand, Elon endorsed me with the strongest endorsement, and we love him, and he's great. And by the way, the Tesla is amazing. But not everybody should have an electric car,” he said.
Freedom to choose
Trump underscored the importance of giving Americans the freedom to choose what type of vehicle they drive.
“[EVs] might be seven or 8% of the market, and then you also want hybrids, and you want to have pure gasoline-driven powered cars. We're going to have everything,” he stated. “You've got to have alternatives and choices. That's what the country is all about. I will end the electric mandate on Day 1 of the administration.”
Advertisement
In recent years, EVs have grown in popularity in America. According to estimates from Kelley Blue Book, Americans purchased 1,189,051 new EVs in 2023, setting a new record.
However, as Trump noted, EVs represent a small fraction of the overall market. Kelley Blue Book estimated that in 2023, the EV share of the total U.S. vehicle market was 7.6%.
Trump also weighed in on hydrogen fuel cell vehicles, which generate electricity using hydrogen gas to power an electric motor. These vehicles only emit water vapor as a byproduct, making them an environmentally friendly alternative to traditional gasoline cars.
However, Trump expressed safety concerns regarding hydrogen cars.
“The new one is hydrogen — there’s one problem. Do you know what the problem is? They blow up. You'll be to the other side of the arena, and you won't feel too good,” he said.
Advertisement
And as a result, Trump will be staying on the sidelines for now when it comes to hydrogen cars, but others are free to purchase them if they choose: “Until they fix that problem, I’d better pass personally. If you'd like one, you could buy one, but I'm going to pass.”
Though the flammable nature of hydrogen raises concerns, several manufacturers, like Toyota, already produce and sell hydrogen fuel cell vehicles. According to Toyota, hydrogen is “as safe as any other fuel used in a car,” with the hydrogen stored in high-pressure tanks and vehicles equipped with comprehensive safety systems that undergo rigorous testing.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Trump vs. Harris
At a rally in Saginaw, Michigan, Trump reinforced his pledge to end the EV mandate, stating, “When I'm president, no state in America will be permitted to ban gas-powered cars or trucks, and I guarantee it — no way. You're going to make them right here.”
In August, Trump also suggested he might consider eliminating the $7,500 tax credit for EV purchases if elected.
What about his opponent, vice president and Democratic presidential nominee Kamala Harris?
In a fact-check email, Ammar Moussa, rapid response director of Harris’s campaign, clarified that “Vice President Harris does not support an electric vehicle mandate.”
During a recent rally in Flint, Michigan, Harris addressed the issue, telling the crowd, “I will never tell you what kind of car you have to drive.”
However, outlets like Axios have pointed out that during Harris’s 2020 campaign, she advocated for “an accelerated model of Senator Merkley’s Zero-Emission Vehicles Act,” which would ensure that “50% of all new passenger vehicles sold are zero-emission by 2030, and 100 % are zero-emission by 2035.”
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
