Additional Coverage:
President-elect Donald Trump’s administration is planning to eliminate the $7,500 tax credit for electric vehicle purchases.
The credit, which has benefited Tesla and its CEO Elon Musk, is expected to be scrapped as part of broader tax reform legislation.
Musk, a vocal Trump supporter, has stated that while the move could hurt Tesla, it would also harm its competitors.
Despite Trump appointing Musk to lead a department tasked with cutting government spending, several of Musk’s companies continue to receive substantial government funding.
SpaceX, Musk’s aerospace company, has benefited from nearly $19.8 billion in federal contracts since 2008, while Tesla has received $41.9 million.
Musk has defended his companies’ receipt of government support, claiming that they have made significant contributions and that their benefits outweigh the costs.