The auto industry is making a last-ditch effort to convince President-elect Donald Trump to spare the $7,500 electric vehicle (EV) tax credit, a crucial incentive for EV buyers and manufacturers. In a letter to Trump and his transition team, the Alliance for Automotive Innovation, which represents major automakers, urged the new administration to preserve the credit, arguing it promotes global competitiveness and creates "good jobs."

The move comes as Trump has threatened to eliminate the EV tax credit, which was enacted under President Joe Biden. The industry is also bracing for a potential rollback of Environmental Protection Agency rules requiring automakers to slash carbon emissions by 2032, primarily by selling more EVs.

The letter, which some have described as overly flattering to Trump, also endorsed a federal regulatory framework for autonomous vehicles, which could benefit companies like Tesla. The auto industry's plea for stability and predictability in emissions standards may be seen as a bid to avoid a repeat of the regulatory whiplash experienced during Trump's first term.