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, Reuters’ Jarrett Renshaw and Chris Kirkham report, citing a document seen by publication. The recommendations come as the U.S. EV transition stalls and China’s heavily subsidized EV industry continues to surge, in part because of its superior battery supply chain. The team also calls for eliminating the Biden administration’s $7,500 tax credit for consumer EV purchases, the authors say. The policies could strike a blow to U.S. EV sales and production at a time when many legacy automakers, including General Motors (GM). Cutting government EV support could also hurt sales of Elon Musk’s Tesla (TSLA), the dominant U.S. EV seller. Other publicly traded companies in the space include Rivian (RIVN), Lucid (LCID), Nio (NIO), Xpeng (XPEV), Li Auto (LI), Nikola (NKLA), and Zeekr (ZK).
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