Donald Trump’s second term as President of the United States will officially begin with his inauguration on January 20. All signs available so far suggest the auto industry is expecting a major shakeup during Trump’s second presidency.
Several automakers are donating to Trump’s inauguration. Ford, General Motors, and Toyota are each giving $1 million to the big party. Ford and GM will also provide vehicles for the event, according to Automotive News. Other companies contributing to this effort include Amazon, Facebook’s parent Meta, and TurboTax maker Intuit.
The entire list of donors is not yet available because the information becomes public 90 days after the inauguration. The folks making the big donations get to attend a candlelit dinner with the President and First Lady, according to CNN. They can also meet incoming cabinet members at a private reception.
A Fascinating Time For The Auto Industry
Before starting his second term as President, Trump’s statements suggested that the auto industry could face significant regulatory changes. For example, he suggested placing a 25-percent tariff on vehicles made in Canada and Mexico. This could affect products from Ford, GM, Honda, Stellantis, and other major automakers.
The incoming President also floated the possibility of eliminating the $7,500 federal tax credit for electric vehicles, which could disrupt the market for those cars. A recent J.D. Power study found that 64 percent of queried EV owners said the tax credit was a primary reason for purchasing an EV. On average, folks who purchased or leased a new EV in 2024 saved $5,124 thanks to federal incentives.
Trump might support fossil fuels by increasing production and opening new oil wells. He pledged support for eliminating rules that cut vehicle emissions through tax cuts or funding.
There are rumors about Trump possibly relaxing regulations on autonomous vehicles. If he does so, the move might benefit Tesla because the company plans to join the self-driving market in the coming years.
Good Times For Tesla
Tesla is already benefiting from Trump’s second term even before he takes office. Elon Musk has been closely involved with the incoming President’s transition team, and his automaker’s stock price has risen nearly 70 percent in the past year.
Musk will continue to play a role in Trump’s second term as co-leader with Vivek Ramaswamy of the Department of Government Efficiency. The program’s goal is to cut government spending by eliminating bureaucratic bloat.
TopSpeed’s Take
The future for the auto industry under Trump’s second term looks chaotic at the moment. Until he takes office, we can’t know for sure what actually could happen.
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