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 J. Trump wants Congress to repeal a $7,500 electric vehicle tax credit. Doing so would hurt American automakers.

A group representing major electric vehicle and battery manufacturers on Friday urged President-elect Donald Trump not to kill tax credits for electric vehicle sales and production, citing the impact on key states that voted for the Republican.