House GOP Representatives Want To Axe Federal EV Credit Amid Trump's Tax Cuts: Report

House Republicans could eliminate the federal EV credit program as the GOP Representatives consider ways to implement President Donald Trump's tax cut package.

What Happened: "I think there is a better chance we kill it than save it. But we'll see how it comes out." GOP House Speaker Mike Johnson said, according to Bloomberg, on Tuesday.

The program, which has been around for years, offers incentives of up to $7,500 on all EV purchases. The report suggests that the initially projected $12.5 billion cost in 2022 could balloon further, with experts cited in the report predicting the scheme could cost $200 billion over the next decade.

Why It Matters: The news comes in as the U.S. is seeing more adoption of EVs across the country. The sector saw a 10.6% YoY growth in cumulative sales in Q1 2025, highlighting increased preference for EVs among drivers.

Several auto manufacturers in the country had previously sounded out calls to the Trump administration to gradually phase out EV credits rather than ending the scheme at once.

The proposed halt could have lasting effects on companies like Tesla Inc. TSLA, General Motors Co. GM and Ford Motor Co. F, as the EV tax credit has been used by manufacturers as an incentive to boost sales.

Elon Musk's EV giant remains a market leader in the U.S. EV sector with over 43.5% segment share. However, there has been a decline in sales for the company both domestically as well as in other markets like Europe.

Elsewhere, the proposed halt could also hamper Jeff Bezos-backed Slate Auto's plans to launch a $20,000 EV pickup truck, the pricing for which would also rely on the federal EV credit.

Price Action: TSLA is currently $276.22, according to Benzinga Pro data.

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