The Future of Electric Vehicles Under a Second Trump Term
Production is now set to begin at the former Detroit-Hamtramck assembly plant, less than two years after GM announced the massive $2.2 billion investment to fully renovate the facility to build a variety of all-electric trucks and SUVs.
At Extreme Investor Network, we are closely monitoring the potential impacts of President-elect Donald Trump’s reelection victory over Vice President Kamala Harris on the U.S. electric vehicle industry. With Republicans largely condemning EVs, claiming they are being forced upon consumers, and Trump vowing to roll back emissions standards and incentives, uncertainty looms over the future of electric vehicles.
David Rubenstein, cofounder and cochairman of The Carlyle Group investment firm, believes that while there may be adjustments to the Biden administration’s Inflation Reduction Act of 2022, it is unlikely to be completely eliminated. Many of the investments into EV production under the IRA have been taking place in Republican states such as Ohio, South Carolina, and Georgia.
In a second Trump term, analysts speculate that legacy automakers like General Motors, Ford Motor, and Stellantis could be the biggest winners. With the current environmental regime putting pressure on automakers to transition to EV portfolios, Trump’s policies could benefit these companies. On the other hand, EV startups such as Rivian Automotive and Lucid Group may face challenges in a Republican-controlled environment.
An outlier in this scenario is Tesla, whose CEO Elon Musk heavily campaigned for Trump. Shares of Tesla soared in early trading, reflecting optimism in the company’s profitability and product offerings.
As we move forward, the battle between California and other states over vehicle emissions standards is expected to continue. With mandates for zero-emission vehicles becoming more stringent, automakers may push for postponements regardless of who is in power.
At Extreme Investor Network, we will continue to provide updates on how the U.S. automotive industry navigates the evolving landscape of electric vehicles under a second Trump term. Stay informed with our expert analysis and unique insights on business news.