The electric-vehicle purchase tax credit makes buying Teslas and other electric vehicles more affordable for most car buyers.

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.

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.