Reports suggest that the incoming U.S. government under Donald Trump intends to reverse key climate protections for the automobile sector established by President Joe Biden. This includes potentially eliminating stricter fuel efficiency standards and electric vehicle (EV) incentives, including a $7,500 tax credit. While Tesla’s CEO Elon Musk perceives the removal of subsidies as beneficial for his company, analysts anticipate significant challenges for traditional automakers in the EV space, hindering their ability to compete against Tesla.