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Electric and Hybrid Vehicles

Rules for a $7,500 tax break for electric vehicle purchases and leases recently changed, but more far-reaching changes are expected when President-elect Donald J. Trump takes office.

The electric-car company led by Elon Musk no longer has the market to itself. Investors are focusing on autonomous driving and other new technologies.

Fewer people will be able to afford electric cars and trucks if President-elect Donald J. Trump and Republicans in Congress eliminate a $7,500 federal tax credit.

From electric cars to solar panels, Mr. Musk has built businesses in high-tech manufacturing sectors now targeted by Beijing for Chinese dominance.

The American automaker said the cost-cutting measure would help it compete with Chinese rivals in the face of slowing demand for electric vehicles.

The new agreement, which builds on an earlier announcement, calls for the German automaker to invest $5.8 billion in Rivian, a maker of electric vehicles.

Investors believe that the electric car company led by Elon Musk will benefit from his support of the president-elect.

Although Donald Trump has opposed policies that favor electric cars, if he becomes president he could ease regulatory scrutiny of Tesla or protect lucrative credits and subsidies.

German
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