Ending the tax credit is not something the new administration can do through executive action. Congress controls government spending, and this would require new legislation. But the budget reconciliation process results in bills that cannot be passed, and Reuters says the Trump transition team will likely use this route as part of a larger overhaul of the tax laws.
Tesla was a major beneficiary of the new clean vehicle tax credit; under the previous arrangement, an OEM was only eligible until it sold its 200,000th plug-in vehicle, at which point the credit available to its customers began to disappear. Tesla – which sells exclusively plug-in vehicles – was unsurprisingly the first to reach this threshold, after which its electric cars became more expensive than competitors' cars. But under the new rules, the sales ceiling was abolished.
You would expect the company to oppose this proposal. But according to Reuters, that's not the case: Tesla is in favor of ending the tax credit for clean vehicles, and CEO Elon Musk has previously said such a move would be far more damaging to rival companies than to Tesla.
