Trump Threatens EV Stocks Again With Plans to Gut Biden’s Electric Vehicle Incentives
Source: Joseph Sohm / Shutterstock.com
Former President Donald Trump is doubling down on his attempts to court campaign donors. Yesterday evening, news broke that Trump recently made a promise to some of the country’s top oil and gas executives that stands to significantly impact multiple clean energy sectors, including electric vehicles (EVs).
Indeed, the former president confirmed his price for rolling back important public policies — oil sector leaders need to contribute some $1 billion to his campaign. If they do, he pledged to reverse many of President Joe Biden’s pro-environmental policies and ensure that new ones are not implemented.
It’s not hard to see what this means. Trump’s proposition is bad news not just for EV stocks, but for many other clean energy producers.
Beyond EV Stocks: Trump’s Plans for Energy
Trump’s promise comes at a time when EV stocks are already facing a complicated economic landscape. That landscape would be made even more complicated by the former president returning to the White House.
Back in November 2023, I reported that Trump had displayed a clear anti-EV stance, as had many other prominent Republican politicians. This isn’t surprising, given the party’s long-standing crusade against policies favoring clean energy and a transition from fossil fuels. As Mother Jones reports, as oil and gas prices have boomed, companies in the space have also increased their GOP donations. In this case, following the money isn’t too difficult.
Throwing out this type of “Hail Mary” pass is on brand for Trump. Biden’s fundraising team has been doing a better job than Trump’s of late and, as November draws near, polls are slowly shifting in Biden’s favor. Now, Trump is displaying a clear willingness to dismantle important regulations for the sake of raising money. As Fortune reports:
“Included in those future regulatory cuts was a promise to undo a series of regulations meant to encourage automakers to invest in and manufacture more electric vehicles. The specific policy limits the amount of carbon emissions allowed from a car’s tailpipes. The new regulation essentially forces car companies to make more electric vehicles, which don’t have any tailpipe emissions. A transition away from gas-powered vehicles toward electric vehicles would harm energy companies that produce the gasoline that powers the cars targeted by the policy.”
With that said, promises like this one from Trump are important to note. The former president is showing just how far he’ll go to regain office and also hinting at his legislative agenda. Other policy proposals Trump has discussed — such as further tax cuts for the wealthy and more tariffs on China — stand to make inflation even worse. Now, Trump is proving that he’s happy to gut important environmental policies, putting EV stocks and their clean energy peers in trouble if he is re-elected.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
