Musk Faces Setback as Trump Targets EV Tax Credits

Elon Musk supports a plan by Trump to eliminate the $7,500 tax credit for electric vehicle purchases, arguing it would harm Tesla's competitors more than Tesla itself. Despite potentially reducing demand, Musk believes the move would ultimately benefit Tesla by pressuring smaller rivals. Tesla, which has a strong manufacturing presence in the US, has been leading an EV pricing war, maintaining its market dominance. The potential removal of tax credits has raised concerns among investors, causing a drop in Tesla's stock.