Trump criticizes shift to electric vehicles as automakers raise concerns about demand

If former President Donald Trump wins another term in November’s election, Biden’s electric vehicle policies could be tossed into the trash.

Trump, the presumptive Republican nominee after Nikki Haley suspended her campaign last week, once again repeated his claims that EVs are not ready for prime time, and structural issues still exist for widespread adoption.

“I’m all for electric cars but you have to have all of the alternatives also,” Trump said in an interview with CNBC on Monday morning. “First of all, they don’t go far, they cost too much, and they’re all going to be made in China.”

Trump has previously stated that EVs are a “hoax” and that an EV transformation will negatively impact the US auto industry and jobs. He has vowed to reverse Biden’s EV policies if he returns to office, bringing him closer to fulfilling that promise.

During the CNBC interview, Trump voiced concerns over the existing infrastructure issues in the US for a complete shift to all-electric vehicles. He emphasized that simply transitioning to electric vehicles is not feasible without addressing the challenges in production and distribution posed by the current grid.

What this means for the auto sector — and EVs

While Trump’s criticisms of the grid’s electrical output are unfounded, his apprehensions regarding energy distribution (such as charging) remain a valid concern for both drivers and automakers.

To rectify the infrastructure issue, automakers are working to collaborate with companies like Tesla to expand charging networks. However, if Trump were to roll back key initiatives like the federal EV tax credit and the infrastructure funding from the Bipartisan Infrastructure Law, the electric vehicle transformation in the US could face significant obstacles.

Concerns raised by consumers about high pricing and competition from gas-powered vehicles have led to stagnating EV sales, prompting automakers like Ford and GM to diversify their offerings with hybrid models. Regardless of the election outcome, automakers are preparing multi-energy platforms that can accommodate various powertrain options within the same model.

While Tesla remains focused on fully electric vehicles, other automakers are exploring hybrid options to cater to diverse consumer needs. Stellantis CEO Carlos Tavares emphasized the importance of adaptability in preparing for different regulatory environments post-election.

Even though Elon Musk and Trump may have differing views on electric vehicles, their personal relationship could potentially influence policy decisions regarding EV incentives and regulations. However, the future of EV incentives and regulations remains uncertain as the election draws closer.