Will Donald Trump’s push to halt EV charger rollout hit Elon Musk’s Tesla hard?

Donald Trump’s administration is halting a funding programme for EV chargers that has allocated millions in federal grants to Elon Musk’s automaker, Tesla.

A memo stated that the Department for Transport has decided to review the policies of the National Electric Vehicle Infrastructure (NEVI) programme, with new guidance expected this spring.

Until then, no new projects can proceed under the programme, putting last year's plans to build EV chargers in several states on hold.

Scarcity of EV chargers

The lack of EV chargers remains a key issue preventing people from buying electric vehicles. The suspension of the programme could significantly hinder EV adoption in the US and may also negatively impact Tesla, which has benefited greatly from NEVI.

Also Read : GTA 6 update: Will PC gamers face a longer wait than console players?

Tesla and NEVI

Tesla has received $31-million in funding from the NEVI programme, making it the third-largest recipient, according to transport officials.

The NEVI programme was a key part of former President Joe Biden's administration’s plan to create a nationwide network of EV chargers.

EV mandate

In contrast, Trump has pledged to reduce the “EV mandate” and cut federal support for electric vehicles.

On his first day in office for his second term, he signed an executive order to immediately pause funding under the NEVI programme.

Additional actions could significantly affect Tesla, the largest EV seller in the US, with reports suggesting that Trump’s team may also consider removing the $7,500 tax incentive for new electric vehicles.

Also Read: Football Manager 2025 cancelled after multiple delays, developers now focused on FM26

Elon Musk's view

Tesla benefits from the tax credit and has begun promoting the Cybertruck with the discount. Despite this, Elon Musk, a vocal supporter of Trump, has stated that he backs removing the credit. Musk believes that scrapping it would be beneficial for Tesla in the long run, although it would harm its competitors in the EV market.

FAQs:

1. What is the NEVI programme?
The NEVI (National Electric Vehicle Infrastructure) programme is part of the US government's plan to build a nationwide network of electric vehicle (EV) chargers.


2. When was the NEVI programme introduced?
The NEVI programme was introduced in 2021.