Will Ending EV Tax Credits Hurt Tesla? Analysts Say It Could Boost The EV Giant's Competitive Edge

The $7,500 EV tax credit could end early under the Trump administration, potentially aiding Tesla by limiting competition. Tesla is the only profitable US EV maker, leveraging high sales volume, unlike legacy automakers, which face losses due to lower EV production. Ending the EV tax credit could lower prices, slightly impacting Tesla’s profits but forcing rivals with higher losses to reconsider their EV strategies. This shift may reduce competition, further solidifying Tesla's dominance in the EV market.