In the U.S., the inauguration of the second Republican Trump administration (January 2025-January 2029) has led to a major revision of the stricter environmental regulations promoted by the previous Democratic Biden administration (January 2021-January 2025).
In conclusion, there will be no change in the emphasis automakers place on BEV development, but the number and timing of product launches will be pushed back.

How will the automotive industry be affected by the Trump administration’s policy of reducing or eliminating electric vehicle-related subsidies as well as its stated intention to relax CAFE/GHG regulations? is a major issue.
The former Biden administration began introducing policies to promote BEVs by strengthening environmental regulations that were relaxed by the first Trump administration (January 2017-January 2021). The symbolic policy is the IRA (Inflation-Reduction Act), centered on the introduction of a tax credit (up to $7,500, Article 30D) for BEV/PHEV buyers, with the goal of raising the percentage of EVs (including some PHEVs) in new car sales to 50% by 2030 by August 2021.

As incentives for producers, the government has introduced support measures to attract investment by offering a tax credit of $45 per kWh (cell: $35, module: $10) for battery production (tax credit for advanced manufacturing, Article 45X).
Electric vehicle-related investment has increased around these policies, with cumulative EV production/battery-related investment totaling $130.76 billion since 2019 (EV production-related: $38.17 billion; battery-related: $92.60 billion).

The Trump administration’s tariff policy is said to be favorable to Tesla in the U.S. However, Tesla’s business model is beginning to show signs of obsolescence, and will it be able to continue to earn the same reputation as before with the general public who are bored with the company?