Trump to kill $7,500 EV credit ... and Elon agrees?

No more $7,500 tax credit for electric cars.

That crucial proposal is tucked away in Trump's big, beautiful bill — and even Elon Musk likes it. (At least, that's what he's saying.)

As Stellantis Ram brand manager Tim Kuniskis says, “Americans like to count cylinders.”

If passed, it would spell the end of up to $7,500 in federal subsidies per EV and would shut the door on an increasingly controversial and costly pillar of the Biden administration’s transportation policy.

Cash for Clunkers 2.0

Let’s be clear: This isn’t about disliking innovation or electric vehicles. Some people love them. Americans love tech and efficiency. But many are waking up to the realization that we’ve been here before — back in 2009 — with the infamous “Cash for Clunkers” program.

That federal boondoggle was touted as a win-win: Stimulate the economy, clean up the roads, and help Americans afford new, fuel-efficient cars. Instead, it destroyed perfectly good vehicles, reduced the used car supply, inflated car prices, and ultimately did little for emissions.

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Fast-forward to today, and the government is repeating history with a different name and a different agenda. This time, it’s EVs that are being pushed through incentives, tax breaks, and regulations. The problem? Americans aren’t buying it — literally. According to AAA’s latest 2024 survey, only 16% of U.S. adults say they’re likely to purchase an EV as their next vehicle, the lowest percentage since 2019. A staggering 63% say they’re unlikely or very unlikely to go electric.

Not buying it

The reasons are clear and reasonable. High purchase prices, unreliable charging infrastructure, battery range anxiety, higher insurance rates, and sky-high repair costs are all legitimate concerns. Add to that the challenge of charging at home — especially for apartment dwellers — and you have a product that’s simply not ready for mass adoption.

That hasn’t stopped the federal government from funneling billions of your tax dollars into EVs, much of it to automakers who were already profitable. What’s worse, companies that don’t even manufacture in America are reaping the rewards, while U.S. taxpayers foot the bill.

No EV-only future

Brands like Toyota and Stellantis (which includes Chrysler, Dodge, Ram, and Jeep) have already expressed skepticism about a full-EV future. Toyota's and Hyundai’s leadership continues to advocate for a mixed drivetrain approach — hybrids, plug-in hybrids, hydrogen, and even internal combustion — arguing that a one-size-fits-all solution doesn't make sense globally or domestically.

They aren’t alone. Honda and Mazda have also taken more cautious steps, resisting the full-EV tunnel vision. It’s not resistance for the sake of rebellion; it’s an approach that represents the truth, rooted in economics, infrastructure, and real consumer behavior.

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Meanwhile, EVs sit on dealer lots for months at a time. Automakers are slowing production. Ford slashed its F-150 Lightning production goals by half. GM is backpedaling on its EV transition timeline, delaying new launches, and many brands are following. Even Tesla, the king of EVs, is feeling the squeeze, with fluctuating demand and concerns about long-term profitability.

Stuck on green autopilot

And yet, the federal government has remained stuck on green autopilot. The current EV tax credit system — expanded under the Inflation Reduction Act — is projected to cost more than $200 billion over the next decade, according to Capital Alpha Partners. These aren’t small subsidies; they’re massive market distortions. And like Cash for Clunkers, the unintended consequences may haunt us for years.

The Republicans’ proposal doesn’t stop at EV credits. It also seeks to eliminate incentives for commercial EVs, used EVs, and other so-called clean energy projects. But don’t confuse this with an anti-tech or anti-progress stance. It’s about rebalancing the market, restoring consumer choice, and stopping the flood of taxpayer dollars toward an agenda that simply doesn’t align with how Americans drive — or want to drive.

As Stellantis Ram brand manager Tim Kuniskis says, “Americans like to count cylinders.”

Americans deserve a transportation future that prioritizes freedom, innovation, and infrastructure that works. That means more choices — not mandates. It means supporting vehicles people actually want and can afford, not forcing premature transitions through subsidies.

President Trump’s new tax plan could do more than balance the books — it could finally bring some sanity back to our roads. Let me know your thoughts in the comments below.