President-elect Donald Trump's transition team is reportedly planning to eliminate the $7,500 consumer tax credit for electric vehicle (EV) purchases as part of a broader tax reform initiative.

This move could significantly impact the already slowing U.S. EV market. Interestingly, representatives from Tesla, the largest EV manufacturer in the country, have expressed support for the proposal to end the subsidy. Tesla CEO Elon Musk, a prominent supporter of Trump, acknowledged that while the removal of the tax credit might slightly affect Tesla's sales, it would be "devastating" for the company's U.S. competitors, including traditional automakers like General Motors.

Following the news, Tesla's shares fell nearly 6% to $311.18, while smaller rival Rivian saw a 14% drop to $10.31, and Lucid's stock decreased by 5% to $2.08.