Reuters reports:

President-elect Donald Trump’s transition team is planning to kill the $7,500 consumer tax credit for electric-vehicle purchases as part of broader tax-reform legislation, two sources with direct knowledge of the matter told Reuters.

Ending the tax credit could have grave implications for an already stalling U.S. EV transition. And yet representatives of Tesla – by far the nation’s largest EV seller – have told a Trump-transition committee they support ending the subsidy, said the two sources, who spoke on condition of anonymity.

Elon Musk, one of Trump’s biggest backers and the world’s richest person, said earlier this year that killing the subsidy might slightly hurt Tesla sales but would devastate its U.S. EV competitors, which include legacy automakers such as General Motors.

Shares of Tesla fell 5.5% to $311.77 in afternoon trading on Thursday. [Continue reading…]