US automakers are reassessing their product lines and budget after President Donald Trump’s administration rolled back environmental regulations aimed at promoting electric vehicles (EVs). The changes, part of a new tax and spending bill, will eliminate incentives for EV buyers and remove the revenue stream that allowed traditional manufacturers to buy credits from EV makers.
Tesla CEO Elon Musk described his company’s situation as a “weird transition period” amid reduced EV incentives. Ford CEO Jim Farley stated that the industry is reaching a cost-cutting “reckoning” as competition rises, prompting Ford to drastically reduce its EV spending and adjust production plans.
The new legislation also ends a provision that allowed US automakers to buy credits from EV makers, which typically offset emissions from their gas-powered cars. As a result, traditional manufacturers will no longer have an incentive to invest in EVs.
General Motors, Rivian, and other companies are now evaluating the financial impact of these changes on their business models. While some experts expect minimal disruption in the long term, others warn that reduced incentives could hinder industry growth and lead to increased competition.
Source: https://www.cnbc.com/2025/08/11/automakers-trump-electric-vehicles-ev-policies-ford-gm-tesla-rivian.html