Trump’s rollback of EV support puts clean electricity at risk

New policies on EVs and clean energy

The One, Big, Beautiful Bill Act, also known as Public Law 119-21, has begun rolling back parts of the Inflation Reduction Act 2022. This new law, which was signed on July 4, 2025, eliminates tax credits and other support for manufacturers and consumers, directly impacting the U.S. clean energy transition.

This new law also reduces progress on transportation emissions. The Act tightens FEOC restrictions and accelerates credit sunsets, creating planning uncertainty for projects; despite this, U.S. EV-manufacturing investment remains substantial according to recent supply-chain trackers.

Major policy changes to affect sales

The administration removed the goal for 50% of new car sales to be electric by 2030. In June 2025, Congress revoked California’s Clean Air Act waiver via H.J.Res. 88 under the CRA, a move now being litigated, with implications for states that follow California standards.

This change is expected to lower new EV sales significantly. According to an Institute for Energy Research study, removing all incentives could cause new EV sales to drop by 16 percentage points by 2030. The single most significant change, removing the tax credits, could reduce sales by 6 percentage points.

Impact on car factories and jobs

According to a study by the International Council on Clean Transportation (ICCT), these policy changes will lead to fewer jobs. Analysts warn of job impacts from policy rollbacks, but credible estimates vary; precise loss figures require a sourced study.

Without steady government support, businesses that make parts for EVs become uncertain. The Zero Emission Transportation Association said this uncertainty hurts over 3,000 U.S. companies and nearly 100,000 workers who make electric car parts, making it hard to plan for growth.

Raw materials for building a vehicle

Building an electric car requires different materials than a gas car. An average EV has about 140 pounds more plastic and special materials than a gas car. It also contains about 85 more pounds of synthetic rubber and significantly more copper, a significant component for the battery and wiring.

A gas car uses about 35 pounds of copper, while an average EV uses over 200. Magnesium is also used in higher amounts in EVs to make them lighter and more efficient, showcasing a significant difference in manufacturing.

Connection to the U.S. electric grid

More electric vehicles on the road means a higher electricity demand. As of September 2025, the U.S. electric grid’s reliance on fossil fuels for generation remains a majority at over 49%. However, recent reports show that solar generation is rapidly growing and displacing natural gas in some regions.

The government’s previous push for EVs encouraged power companies to invest in clean energy. Without that push, utilities may slow their plans for new solar and wind farms, affecting the shift to a cleaner grid. This could cause natural gas-fired power plants to increase their share of electricity generation again.

Ford’s massive EV production investments

Ford is making a significant shift toward EVs. As of mid-2025, the company has lowered its global EV production target. Ford’s CEO stated the company aims to reach an annual production rate of 250,000 EVs by the end of 2025, a significant adjustment from earlier goals.

Despite this change, Ford continues to invest in EV infrastructure, having announced an $11.4 billion investment in a joint venture with SK Innovation. This will fund three battery plants and a new EV truck factory in Tennessee and Kentucky, creating thousands of jobs.

GM’s plans to create new EV models

General Motors has been committed to a future with zero emissions. In January 2021, the company announced a plan to be carbon-neutral by 2040 and to offer 30 all-electric models globally by 2025.

This plan involves investing $35 billion in EVs and self-driving cars through 2025. GM is a leader in developing its own battery technology, called Ultium. The company is building four battery plants in the U.S. and aims to produce more than 1 million EVs in North America by the end of 2025.

Tesla’s supercharger network is a key

Tesla’s ability to sell a lot of EVs is helped by its extensive charging network. As of July 2025, Tesla operates about 7,377 Supercharger stations with over 70,228 connectors worldwide.

The network has grown steadily, with a 17% annual growth rate for stations in 2024. Tesla’s network achieved 99.96% uptime in 2021. The company plans to add 7,500 new stations to its existing network in the U.S., with 3,000 of them available to all EVs, which will help other companies’ cars.

Toyota’s history with electric cars

Toyota created an RAV4 EV in 1997, selling 1,484 vehicles in California. This early effort, while limited, showed the company’s interest. Then, Toyota focused on hybrids, selling more than 15 million globally since the Prius launch in 1997.

In 2021, Toyota announced a massive shift back to full EVs. The company committed to launching 30 new battery electric models by 2030. They plan to invest about $70 billion in these new vehicles and their batteries.

Early tax credit for plug-in vehicles

The first federal tax credit for electric cars was created in 2008. It was called the Qualified Plug-in Electric Drive Vehicle Credit and offered up to $7,500 for a new EV purchase.

This was the first major government incentive to help people buy electric cars. The program was used by many people and helped the EV market get started. For example, Tesla sold its first Model S in 2012, and its buyers got the full $7,500 credit, which made the car more affordable.

The “cash for clunkers” program

In 2009, during an economic crisis, the U.S. government started the Car Allowance Rebate System (CARS). This program, nicknamed “Cash for Clunkers,” gave car owners up to $4,500 to trade in an old, gas-guzzling vehicle for a new, more fuel-efficient one.

The program spent its budget of $3 billion in less than three months. It helped replace over 677,000 vehicles with more efficient ones. The program proved that government incentives can quickly change consumer behavior and boost car sales.

GM’s historic EV1 project

General Motors had a brief but essential history with its EV1. It was the first modern electric car mass-produced by a major automaker. Introduced in 1996, it had a range of around 70 miles and was only available by lease in California and Arizona.

The program ended in 2003, with GM removing all 1,117 cars from its customers. The company said the project was not profitable and couldn’t find enough consumer interest.

The first electric cars in the US

Early electric cars were very popular at the start of the 20th century. By 1900, electric vehicles comprised about 38% of all cars in the United States. In contrast, gasoline cars made up only 22%. They were quiet and didn’t have the fumes or vibrations of gasoline engines.

However, electric cars were more expensive and couldn’t travel as far. For example, the Fritchle Electric car 1908 had a range of about 100 miles on a single charge. This was a challenge compared to gasoline cars.

The first gasoline car and its facts

Karl Benz built the first gasoline-powered car in Germany in 1885. He received a patent for it in January 1886. The car had three wheels and a single-cylinder engine that produced only 0.75 horsepower.

It was called the Benz Patent-Motorwagen.In 1888, his wife, Bertha Benz, took the car on the first long-distance road trip. She drove about 65 miles to prove that the car was reliable. Her trip made the car famous and helped gasoline engines become the standard.

Henry Ford’s role in vehicle dominance

Henry Ford’s invention of the moving assembly line in 1913 changed everything for gasoline cars. The assembly line cut the time to build a car from over 12 hours to about 93 minutes.

This made the Ford Model T much cheaper. In 1914, Ford doubled the daily wage for factory workers to $5, making cars more affordable. This speed and low cost combination helped gas cars take over the market from both EVs and horses.

Wondering how this policy shift could affect car prices? Get the details in Trump, which eases auto tariffs before the deadline.

An early American electric car

Sebring-Vanguard became the sixth-largest U.S. automaker in the mid-1970s by producing a small EV called the CitiCar. It was a fundamental car with a top speed of 39 mph and a range of about 50 miles.

Around 2,000 were produced in 1975. The CitiCar was successful for a short time because of the oil crisis 1973, when gasoline prices rose sharply. Its success shows that when gas is expensive, people are more open to new, cleaner forms of transportation.

Curious why the company pushed back on White House pressure? Find out if automakers reject Trump’s appeal for US factories.

What’s your take on this shift? Share your thoughts below.

Read More From This Brand:

• Tesla Risks Billions as Trump Eyes End to Key EV Credit Loophole
• Trump says he’s cutting car costs but prices are still up
• Automakers hit the brakes on EV plans after Trump’s tax rollback

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This slideshow was made with AI assistance and human editing.