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Is the end of electric cars coming or how Trump's victory will affect the auto business

Nov 8, 2024 11:10 240

Is the end of electric cars coming or how Trump's victory will affect the auto business  - 1

Analysts are not unanimous in their assessment of the future behavior of the 47th president of the United States regarding the auto business, but in several messages are still confident: the customs war with China will unfold with new force and electric mobility will be stopped.

After Donald Trump won a second presidential term, there was an immediate panic among car manufacturers. So far, the biggest gain is recorded by "Trump's friend" Elon Musk - shares of his company Tesla rose 14% immediately after Trump's victory. However, other manufacturers of electric cars and traditional cars are not so happy, and there are several reasons for this.

According to Automotive News, former President Donald Trump's return to the White House is likely to lead to a period of uncertainty in the auto industry regarding regulations, incentives and sales of electric vehicles.

Most concerned are the Chinese, who expect President Donald Trump to take steps to further isolate Chinese auto and parts makers to protect the US domestic market. At the same time, the new administration can be expected to eliminate tax incentives for electric vehicles, which will hurt automakers that have invested heavily in electric powertrains.

Trump threatened to impose import duties on goods from the EU as well, so the shares of European manufacturers BMW, Volkswagen, Mercedes-Benz and Porsche fell by 5.2 - 7.7%, reports Reuters. Still, BMW CEO Oliver Zipes said BMW would benefit from its “very, very large presence in the US”. Perhaps we are talking about the BMW plant in Spartanburg, which produces the X5, X6 and X7 SUVs.

Trump's position on electric cars is not a secret to anyone, Electrek reminds - his second term is likely to lead to a reduction in investments made by the Biden team in green energy, the cancellation of tax incentives for buyers of electric cars and a change in policies aimed at reducing CO2 emissions.

Maybe soon we will hear the opinions of other automakers about Trump's victory and possible changes in the auto industry. “We expect it to be difficult for car manufacturers and exporters,” said Nicholas Forrest, chief investment officer at Candriam. - "Trump may introduce more tariffs on imported goods, so for German and French car manufacturers, everything exported from Europe is a risk."

But not only Europe. Trump wants to keep cars from Mexico out of the country. That is why China's BYD, for example, stopped its plan to build a plant in Mexico that was supposed to become a key production site for access to the US. BMW also plans to start production of its next-generation electric cars, called the "Neue Klasse," in Mexico in 2027, but Elon Musk is also building a Tesla plant there.

But mostly, of course, Trump has China in his sights: He plans to phase out Chinese imports during his second term, as well as ban Chinese companies from owning American real estate and energy and technology infrastructure. sector.