President Donald Trump has taken a significant step towards halting the flow of funding for electric vehicle (EV) charging infrastructure, which could have far-reaching implications for Tesla and its mission to advance sustainable energy. In one of his first executive orders, Trump has instructed agencies to pause the disbursement of funds from programs created by the Inflation Reduction Act and Bipartisan Infrastructure Law, specifically targeting the National Electric Vehicle Infrastructure (NEVI) Formula Program and the Charging and Fueling Infrastructure (CFI) grant program.

These programs have been instrumental in supporting Tesla's efforts to build out its market-leading EV charging network. The company has tapped into these programs over the past two years, securing significant funding to further its ambitions. However, if Trump's gambit succeeds, Tesla could be cut off from these vital sources of funding, potentially hindering its progress in the EV space.

The NEVI program, in particular, has been a significant source of funding for Tesla, with the company winning around 13% of all NEVI awards by mid-2024. These funds have been instrumental in helping Tesla expand its Supercharger network, which is now open to almost all competing EVs. Additionally, Tesla was recently part of a group that won a $100 million award from the CFI program to build out charging infrastructure for heavy-duty electric trucks across Illinois.

While it's uncertain whether Trump's order will ultimately succeed, experts believe that the administration may be able to slow or stop the flow of future spending from these programs. According to Martin Lockman, a fellow at Columbia Law School's Sabin Center for Climate Change Law, the Trump administration may be able to exploit "wiggle room" in the laws governing these programs to delay or halt spending. However, it's unclear whether Trump can legally stop the funding of awards that are already under contract.

Lockman cautioned that if agencies feel sufficient pressure from Trump, they could potentially violate the terms of existing contracts and refuse to disburse funds. This could lead to a situation where companies, state and local agencies, or other entities that have won awards from NEVI or CFI would have to fight to get their contracts fulfilled in court. "If the new administration wants to make people fight for their contracts in court, that would certainly be a huge barrier to building EV infrastructure," Lockman said.

This development is particularly noteworthy given Elon Musk's stated mission to "accelerate the transition to sustainable energy." However, Musk's political interests seem to be at odds with his company's goals, as he is now officially working with the Trump administration, which has taken a series of measures to undermine sustainable energy initiatives. Trump has already signed orders halting federal leases for offshore wind development, pulling the United States out of the Paris climate agreement, and is trying to reverse other Biden administration EV policies.

The implications of this move are far-reaching, with potential consequences for the entire EV industry. As the US continues to grapple with the challenges of transitioning to sustainable energy, this development could have a significant impact on the pace of progress. With Tesla's ambitions potentially threatened, the industry will be watching closely to see how this situation unfolds.