Investing.com -- In a note to clients on Wednesday, Bernstein analysts assessed the potential downside risks to electrical infrastructure stocks if President-elect Donald Trump repeals the $7,500 electric vehicle tax credit, a move that is reportedly being considered as part of broader tax reform.
They estimate that eliminating the tax credit would reduce electricity demand growth attributable to EVs from a compound annual growth rate of 0.6% to 0.4% over the next five years. They also reversed their earlier conclusion that the Inflation Reduction Act’s tax credits boosted EV demand by 25%, implying a similar decline if the credits are repealed.
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