Executive order to end EV incentives and cut charging station funding may impact all car buyers in California.
SAN DIEGO — President Trump’s recent executive order to end electric vehicle (EV) incentives and cut funding for charging stations could have far-reaching consequences for car buyers in California.
The order, signed last month, aims to eliminate the $7,500 federal tax credit for EV purchases and reduce funding for new charging stations across the country. This move has created uncertainty in the automotive industry, particularly in California, where there’s a mandate to achieve 35% electric vehicle sales by the 2026 model year. “It’s created a lot of uncertainty and chaos, right… trying to figure out what the impact could be,” said Stephanie Valdez Streaty of Cox Automotive.
The California New Car Dealers Association is concerned about potential market disruptions. President Brian Maas warned, “We’re very concerned that there’s going to be serious disruption in the vehicle market and consumers aren’t going to be able to access the vehicles that they want to buy.” Maas fears that car manufacturers might reduce shipments of gas-powered vehicles to California to meet the 35% EV sales threshold, potentially leading to price increases for all new cars due to reduced supply.
For those considering an EV purchase, Maas advises acting quickly: “I would encourage folks who are – especially those interested in a zero emission vehicle – act now while the credits are still available. There’s plenty of selection on dealer lots.”
President Trump’s move has some scratching their head because his biggest campaign supporter, Elon Musk, owns Tesla and that company’s sales were already heading in the wrong direction in our state. “Tesla sales have dropped 5 quarters in a row in California and his market share has been steadily declining over the past year,” Maas noted.
As the industry grapples with these changes, experts believe the key to increasing EV adoption lies in technological advancements. Valdez Streaty explained, “I think the key will be to have more affordable EVs in the market place and will continue to see battery advancement technology improve. We’ll have more density, more range, safer, lower cost.”
