Coral Davenport

But if the permitting is taken away, it will slow down its growth quite significantly.

So EVs are more complicated. We talked about the Biden EV tax credits, the consumer tax credits for buyers of electric vehicles, all the money for the companies that are making it. All of that is authorized by Congress. All that is already in the law. The president cannot make that money go away immediately. the federal government is obligated to continue to give that money.

So EVs are more complicated. We talked about the Biden EV tax credits, the consumer tax credits for buyers of electric vehicles, all the money for the companies that are making it. All of that is authorized by Congress. All that is already in the law. The president cannot make that money go away immediately. the federal government is obligated to continue to give that money.

And the only way it can really stop it is if Congress enacts a new law that ends a lot of those tax policies. And even though we are in a Republican-majority Congress, it's far from clear that all Republicans really want that. Why? Because a lot of those EV tax credits for manufacturing are going to red congressional districts.

And the only way it can really stop it is if Congress enacts a new law that ends a lot of those tax policies. And even though we are in a Republican-majority Congress, it's far from clear that all Republicans really want that. Why? Because a lot of those EV tax credits for manufacturing are going to red congressional districts.

There are a lot of congressional districts with Republican representatives where all this money is flowing in and creating new EV battery plants, new manufacturing along the EV supply chain that has created jobs.

There are a lot of congressional districts with Republican representatives where all this money is flowing in and creating new EV battery plants, new manufacturing along the EV supply chain that has created jobs.

And so there's a number of Republicans who are raising their hands and saying, OK, you know, maybe we want to repeal some things that Biden did, but not this EV manufacturing tax credit, not that one. And so I don't think they'll be able to wipe those all off the books.

And so there's a number of Republicans who are raising their hands and saying, OK, you know, maybe we want to repeal some things that Biden did, but not this EV manufacturing tax credit, not that one. And so I don't think they'll be able to wipe those all off the books.

So the big thing that the administration can do, and I'm certain they will do, is this big regulation that compels automakers to reduce the emissions associated with cars sold. That was done through the Environmental Protection Agency, and I fully expect the Trump EPA to initiate a regulatory rollback of that. That will take a lot of time, though.

So the big thing that the administration can do, and I'm certain they will do, is this big regulation that compels automakers to reduce the emissions associated with cars sold. That was done through the Environmental Protection Agency, and I fully expect the Trump EPA to initiate a regulatory rollback of that. That will take a lot of time, though.

In the first Trump administration, they similarly tried to roll back a clean car rule. That took all four years. They didn't finish that until 2020. It was one of the last things that they did. So it's difficult. It takes time. But ultimately, they can do it without Congress. They have the legal authority. I would fully expect them to see a rollback of that regulation.

In the first Trump administration, they similarly tried to roll back a clean car rule. That took all four years. They didn't finish that until 2020. It was one of the last things that they did. So it's difficult. It takes time. But ultimately, they can do it without Congress. They have the legal authority. I would fully expect them to see a rollback of that regulation.

Exactly.

Exactly.

You know, automakers don't like regulation, but what they hate even more is this uncertainty. They really hate this back, forth, back, forth, back, forth. One reason for this is that automakers have to plan what cars are going to be in showrooms like five or six years from now.

You know, automakers don't like regulation, but what they hate even more is this uncertainty. They really hate this back, forth, back, forth, back, forth. One reason for this is that automakers have to plan what cars are going to be in showrooms like five or six years from now.

If all these laws and rules go away, then it's really difficult for them to have invested all this money into cars that there may be no demand for. So this is a challenge for automakers. Here's another really big challenge for automakers. The global market is already moving towards EVs. In China, more than half the new cars sold are now EVs.

If all these laws and rules go away, then it's really difficult for them to have invested all this money into cars that there may be no demand for. So this is a challenge for automakers. Here's another really big challenge for automakers. The global market is already moving towards EVs. In China, more than half the new cars sold are now EVs.

And American automakers really want to get in that market and compete. They want to be selling their EVs to China. And so, interestingly, as much as they really don't like tough regulations, the automakers have been going to Trump and saying, look, please don't do this. Don't ratchet this all the way back. The market is already transitioning. Like, the horse is out of the barn.