The potential elimination of the electric vehicle tax credit in the US could result in a significant decrease in demand for electric vehicles.

Experts estimate that there could be a 27% drop in EV demand, leading to 317,000 fewer EV registrations annually. This news comes after reports that President-elect Donald Trump may seek to abolish the tax credit, which is a crucial part of the 2022 Inflation Reduction Act.

As a result, US auto stocks experienced a decline last week as investors expressed concerns about the future of electric vehicle incentives and their impact on the market. While the removal of the tax credit is expected to affect EV sales, the increase in gasoline consumption is projected to be minimal, indicating a shift in consumer preferences that could reshape the automotive industry.