On the other hand, proponents of ending the tax credit, including some Republican lawmakers, argue that the market should determine the success of EVs without government intervention. This perspective stems from Tesla's established market dominance and ability to produce EVs at a lower cost than many of its rivals.

President-elect Donald Trump's transition team is planning to kill the $7,500 consumer tax credit for electric-vehicle purchases as part of broader tax-reform legislation, two sources with direct knowledge of the matter told Reuters.