INSIDER
One big loser in President Donald Trump’s escalating trade war is likely to be the U.S. electric vehicle industry.
Joe Raedle/Getty Images(CNN) - The federal tax credit for Tesla buyers falls by 50% on Monday and will be eliminated altogether at the start of 2020. The reduction of the tax credit makes buying a Tesla more expensive, because the credit reduces the federal tax bill for buyers. To receive the tax credit, a buyer must take delivery of a car by the deadline, not just order it. The slow demise of the tax credit puts Tesla in a squeeze. Competing legislation to eliminate the tax credit altogether and impose a federal tax on electric vehicles has also been introduced.
