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A century-old electric car battle returns: Will history repeat itself under Trump?

Electric vehicles once ruled American streets before politics and oil sidelined them — and today's political shifts may be putting them at risk again.

May 27, 2025 / 09:50 IST
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Electric vehicles (EVs) charge at the Tesla center in Manila on January 20, 2025.

Long before Teslas and battery-powered SUVs became symbols of the future, electric cars were already popular in the early 1900s. Models like the Baker Electric Coupe and Riker Electric Roadster ran smoothly on U.S. roads, with electric taxis making up a third of New York’s fleet at one point. But as oil-based fuels became widely available and the Ford Model T offered a cheaper, longer-range alternative, battery cars began losing ground. By the mid-1930s, electric vehicles had almost completely vanished, overtaken by gas-powered cars and the rise of the oil industry, which was heavily supported by federal tax incentives.

The politics that powered gasoline — and sidelined EVs

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In 1926, US lawmakers offered generous tax breaks to oil companies, letting them deduct 27.5% of their sales from taxable income. This helped cement gasoline’s dominance for decades. Today’s Republican leaders are taking similar steps — but in reverse. The Trump administration is pushing to eliminate tax credits for electric vehicles, impose a new annual fee of $250 on EV owners, and halt federal investment in EV charging infrastructure. The proposed changes could stall the industry’s momentum just as it's beginning to grow, the New York Times reported.

Infrastructure remains a key challenge — then and now