Trump Signs Executive Order to End Electric Vehicle Subsidies
On January 20, his inauguration day, President Trump signed an executive order called “Unleashing American Energy,” aimed at promoting traditional energy resources like oil and gas while rolling back policies favoring electric vehicles (EVs) and renewable energy.
The order criticizes regulations that Trump says have made energy more expensive and hurt industries like farming, manufacturing, and transportation. It declares that the U.S. will focus on using its natural resources to lower energy costs, create jobs, and strengthen economic and military security.
The order calls for eliminating what Trump describes as the “electric vehicle mandate,” which he argues forces people and businesses to choose EVs over gas-powered cars. He plans to remove state waivers for stricter emissions rules and reconsider subsidies for EVs.
Also, agencies are instructed to stop disbursing funds tied to green energy programs under laws like the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. These funds include those for EV charging stations. Agencies will review their spending policies and report back within 90 days, ensuring they align with Trump’s energy priorities.
The President argues that these moves will help lower energy costs, create jobs, and give Americans more freedom in choosing vehicles and energy sources. Here’s the exact text below:
(e) to eliminate the “electric vehicle (EV) mandate” and promote true consumer choice, which is essential for economic growth and innovation, by removing regulatory barriers to motor vehicle access; by ensuring a level regulatory playing field for consumer choice in vehicles; by terminating, where appropriate, state emissions waivers that function to limit sales of gasoline-powered automobiles; and by considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies and effectively mandate their purchase by individuals, private businesses, and government entities alike by rendering other types of vehicles unaffordable;
Now, the news will hit electric vehicle automakers hard. Shares of Tesla are down 2% as of writing. Tesla CEO Elon Musk is working hand-in-hand with the administration as leading the Department of Government Efficiency (DOGE) and more.
President Trump has hit the ground running from his first day in office. So far, he has issued 42 executive orders, memoranda, and proclamations, completed 115 personnel actions, and carried out over 200 executive actions. According to the administration, these efforts mark the beginning of a fast-paced agenda aimed at fulfilling campaign promises.