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Freedom to choose

Trump underscored the importance of giving Americans the freedom to choose what type of vehicle they drive.

“[EVs] might be seven or 8% of the market, and then you also want hybrids, and you want to have pure gasoline-driven powered cars. We're going to have everything,” he stated. “You've got to have alternatives and choices. That's what the country is all about. I will end the electric mandate on Day 1 of the administration.”

In recent years, EVs have grown in popularity in America. According to estimates from Kelley Blue Book, Americans purchased 1,189,051 new EVs in 2023, setting a new record.

However, as Trump noted, EVs represent a small fraction of the overall market. Kelley Blue Book estimated that in 2023, the EV share of the total U.S. vehicle market was 7.6%.

Trump also weighed in on hydrogen fuel cell vehicles, which generate electricity using hydrogen gas to power an electric motor. These vehicles only emit water vapor as a byproduct, making them an environmentally friendly alternative to traditional gasoline cars.

However, Trump expressed safety concerns regarding hydrogen cars.

“The new one is hydrogen — there’s one problem. Do you know what the problem is? They blow up. You'll be to the other side of the arena, and you won't feel too good,” he said.

And as a result, Trump will be staying on the sidelines for now when it comes to hydrogen cars, but others are free to purchase them if they choose: “Until they fix that problem, I’d better pass personally. If you'd like one, you could buy one, but I'm going to pass.”

Though the flammable nature of hydrogen raises concerns, several manufacturers, like Toyota, already produce and sell hydrogen fuel cell vehicles. According to Toyota, hydrogen is “as safe as any other fuel used in a car,” with the hydrogen stored in high-pressure tanks and vehicles equipped with comprehensive safety systems that undergo rigorous testing.

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Trump vs. Harris

At a rally in Saginaw, Michigan, Trump reinforced his pledge to end the EV mandate, stating, “When I'm president, no state in America will be permitted to ban gas-powered cars or trucks, and I guarantee it — no way. You're going to make them right here.”

In August, Trump also suggested he might consider eliminating the $7,500 tax credit for EV purchases if elected.

What about his opponent, vice president and Democratic presidential nominee Kamala Harris?

In a fact-check email, Ammar Moussa, rapid response director of Harris’s campaign, clarified that “Vice President Harris does not support an electric vehicle mandate.”

During a recent rally in Flint, Michigan, Harris addressed the issue, telling the crowd, “I will never tell you what kind of car you have to drive.”

However, outlets like Axios have pointed out that during Harris’s 2020 campaign, she advocated for “an accelerated model of Senator Merkley’s Zero-Emission Vehicles Act,” which would ensure that “50% of all new passenger vehicles sold are zero-emission by 2030, and 100 % are zero-emission by 2035.”

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Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

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