As expected, the transition team for President-elect Donald Trump is now reportedly looking to slash support for electric vehicle (EV) and charging programs set up by the Biden administration, along with lodging global tariffs and pushing to ease regulations on fossil-fuel emissions.
The Trump transition team is now looking at plans to ease regulations on the fossil fuel industry and to cut many EV programs, including the $7,500 EV tax credit, along with lodging tariffs on battery material imports worldwide, according to a document seen by Reuters this week.
As part of efforts to bolster the domestic supply chain for battery materials, many of which are produced in China and are heavily subsidized in the U.S., the transition team has recommended imposing tariffs on all battery materials around the world, before negotiating individual exemptions with allies, as the document shows.
“When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars and electric vehicles,” said Karoline Leavitt, spokesperson for the Trump transition team, in a statement.
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Although Trump campaigned on promises to end the $7,500 federal EV credit and official plans to kill the subsidy were reported last month, the transition team has also called for rolling back the $7.5 billion plan passed under Biden to help aid the buildout of charging stations for EVs.
Instead, the team has said that it would shift this and other funding currently going toward making EVs more affordable toward national defense efforts, including the initiative to secure battery supplies without relying on China. The document notes that these efforts would focus on shifting money toward battery material production, as well as the “national defense supply chain and critical infrastructure.”
The document suggested that the team utilize Section 232 tariffs, which are intended to limit the import of any items related to potential national security threats. Biden recently increased tariffs on several imports related to charging technology and critical minerals for EV batteries, including graphite, “permanent magnets” used in EV motors and in military applications, and lithium-ion batteries, among others, though the tariffs were issued on economic grounds, rather than on those in national security.
The transition team is also looking to waive environmental reviews to accelerate “federally funded EV infrastructure projects,” such as those in battery production and recycling, charging deployment, and manufacturing of critical minerals. Other proposals detailed in the document include:
- Ditching federal requirements for electrifying government fleets, including Biden’s policy to mandate all federal purchases by zero-emission vehicles by the end of 2027
- Using the Export-Import Bank of the U.S. to provide financial support for U.S. batteries for EVs
- Utilizing tariffs as a “negotiating tool” to encourage other markets to consider U.S. auto exports including both gas cars and EVs
- Ending restrictions on exports of EV battery technology to countries deemed adversaries
- Ending programs for the Department of Defense attempting to buy or develop electric military vehicle options
How will ending the $7,500 EV tax credit affect Tesla? Musk calls it a benefit
While many have said that ditching the $7,500 tax credit and other policies intended to help spur on the adoption of EVs could hurt Tesla, CEO Elon Musk and others have argued that it may only benefit the company by harming other automakers even more. Wedbush analyst Dan Ives said last month that the change would only “enable Tesla to further fend off competition from Detroit,” given its already decisive advantage in EV scale.
In his latest statement regarding EV subsidies, made on X last month, Musk called for the U.S. to “end all government subsidies, including those for EVs, oil and gas.”
Musk also campaigned with Donald Trump during the election and created the political action committee (PAC), dubbed America PAC, to support his candidacy financially. He has since gained a position in what the team has called the Department of Government Efficiency, and he’s expected to play a major role in the upcoming administration.
In a report last week, it was said that the Trump transition team is also considering getting rid of a mandatory reporting measure for automated driving systems, as part of a larger effort to remove regulations and push self-driving vehicle development forward more quickly. An additional report from last month also suggests that Trump is already looking to create federal rules surrounding the rollout of autonomous vehicles, expected to accelerate the deployment of commercial robotaxis and other self-driving technologies.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Analysts weigh in on Trump presidency’s effects to U.S. auto sector
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Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a massive beat on vehicle deliveries for the second quarter, delivering 489,126 vehicles and building 451,758 cars during the three-month span.
This was a major shock for those on Wall Street as they anticipated somewhere around 400,000 deliveries for the quarter, and showed Tesla still has plenty of demand for its vehicles around the world and in the U.S. despite losing the $7,500 EV Tax Credit last year.
Tesla Q2 2026 Earnings Results
- Non-GAAP EPS – $0.33 reported vs. $0.53 expected
- Revenues – $28.236 billion reported vs. $26.4 billion expected
- Free Cash Flow- -$1.092B
- Profit -$ 4.751B
Tesla (beat/missed) analyst expectations, so the market response to the company’s quarter is what we will look for next.
Tesla shares closed today down just over 1 percent, trading at $374.01.
In the past, it has been anyone’s guess with what Tesla shares will do after they report earnings. Strong quarters have resulted in sharp drops, while lackluster quarters have seen the stock shoot up considerably.
Tesla will hold its Q2 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q2 2026 Earnings Call https://t.co/zZS6ii2TWK
— Tesla (@Tesla) July 22, 2026
Tesla is about to make parking in busy parking lots at businesses and other points of interest less stressful than ever by allowing drivers more control over where they park and how, CEO Elon Musk confirmed on X.
Tesla has been working to improve the parking performance of vehicles utilizing the Full Self-Driving suite, but now it is looking to add more customization, allowing drivers to choose the specific space they park in, but also potentially the orientation the car pulls into the spot:
It’s coming soon
— Elon Musk (@elonmusk) July 21, 2026
Musk has reiterated on X twice over the past several weeks that Tesla is working to make things with the FSD suite based more on the driver’s specific preferences and behaviors that were seen in past drives.
Essentially, it sounds like if you tend to park away from a business to avoid other vehicles, Tesla FSD will soon recognize that preference of yours and start parking further away as well. Additionally, the prospect of assigned parking spaces has been something many owners have voiced concerns about.
Living in a community with assigned parking spaces makes using FSD incredibly difficult as it will rarely park in the correct spot when there are so many to choose from. This is also pertinent in work settings where there are sometimes assigned parking spaces.
The updates to Tesla’s Full Self-Driving suite in terms of listening to driver preferences with parking are also extending to routing. Tesla announced yesterday that with the release of its 2026 Summer Update, it was adding Automatic Navigation and Preferred Routes:
Tesla reveals 2026 Summer Update with crazy fixes to Nav and more
Tesla has always maintained the idea that any human input is bad input, and that, ideally, Tesla Full Self-Driving will always make the right decision. Of course, this is all in theory, but the issue is that so many of Tesla’s interventions have come because it does something that is not necessarily wrong, but perhaps not what the driver would prefer.
Taking these preferences into account will help Tesla alleviate some of the potentially unnecessary interventions that drivers perform.
Tesla is starting to prepare for the launch of the Optimus robot in its smartphone app, new coding strings show. Elon Musk has referred to Optimus as what will be the greatest-selling product of any kind of all time, and now, Tesla is getting ready for its launch.
Tesla’s smartphone app had several first-time mentions of the Optimus program, according to Tesla App Updates, who intially reported on the appearance. Here’s what they found:
A Dedicated “Robot” Phone Key Authentication
Tesla is working on a Bluetooth Low Energy, or BLE, authentication that is specifically for robots. This does not only apply to Optimus, though, as Robotaxi, which is Tesla’s autonomous ride-hailing platform, might also identify vehicles within the fleet as robots as well.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Essentially, pairing your phone as a key to anything Tesla identifies as a robot to a “whitelist” of authorized devices. Optimus, Robotaxi, or other products that fall into this category will only respond if the device trying to communicate with it is authorized.
This is a great security feature that will eliminate at least face-value and low-level threats.
Home Data Collection and System Alerts
This appears to be somewhat of a neural network for Optimus within your house. There will be a dedicated screen that asks for consent to collect both video and spatial data while Optimus performs in-home tasks. Everything from vacuuming, washing dishes, dusting, and other activities will be tracked.
There will also be a comprehensive alert system that will track everything from low battery to mechanical issues.
Other Changes
Most of the changes tracked in this particular app update are related to Tesla’s 2026 Summer Update, and include things such as image assets for new features, a preview of the new custom wraps feature, and other unique features.
You can check out our coverage on what is included with the 2026 Summer Update here:
Tesla reveals 2026 Summer Update with crazy fixes to Nav and more
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla is about to make parking in busy lots less stressful than ever
