The proposed repeal is under discussion by a transition team led by oil magnate Harold Hamm and North Dakota Governor Doug Burgum.

Tesla stock was up in early trading Friday, rebounding from a steep drop on Thursday after Reuters reported that President-elect Donald Trump plans to reduce or eliminate the electric-vehicle purchase tax credit,

There's a lot of chatter about the President-elect's plans to eliminate the electric vehicle tax credit. Here's what you need to know.

Although Tesla applauded the Trump administration's decision to eliminate the $7,500 consumer tax credit for electric vehicle purchases, it was criticized for perhaps making the US electric vehicle transition more difficult.

When former President Donald Trump campaigned on a promise to end the $7,500 electric vehicle tax credit, many people pointed to his newfound close ties with Tesla CEO Elon Musk as proof that he wouldn't really act to deliberately harm America's nascent EV sector.

At this point, many buyers are taking advantage of the credits at dealerships when they buy a car. In the past, they had to wait to claim it on their taxes the following year. Now, there’s the option of transferring their credit to the dealer and getting an instant rebate.

Shares of Tesla and other electric vehicle makers fell Thursday after a report President-elect Donald Trump and his transition team are planning to end a $7,500 EV tax credit.