"Trump Transition Committee Plans To Abolish IRA Electric Vehicle Tax Credit"

Foreign media reported that the U.S. President-elect Donald Trump's transition team is planning to abolish the U.S. inflation reduction law and the IRA-based electric vehicle tax credit.

An energy policy team led by oil and gas company "Continental Resources" founders Harold Ham and North Dakota Governor Doug Burgum is discussing abolishing the IRA tax credit, Reuters said, citing sources.

Sources said several related meetings have already been held and that the electric vehicle tax credit should be eliminated to secure the necessary resources for Trump's tax cut pledge.

Tesla, the largest electric vehicle maker in the U.S., also told Trump's transition team that it supports abolishing subsidies, the sources said.

Reuters said Tesla CEO Elon Musk, who led the Trump campaign, said abolishing the tax credit would hurt Tesla a little, but maintaining the tax credit would devastate other oil car industries.

Reuters said the abolition of EV subsidies would inevitably have an impact on the U.S. transition to EVs, saying the fallout would be inevitable for EV makers as well as battery makers.

If the measure materializes, it is expected to have a significant impact on the business plans of Korean companies such as Hyundai Motor, which has been actively investing, such as setting up factories in the U.S. to receive subsidies.