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.

With a second Trump administration taking shape, it is time for automotive investors, especially Tesla stockholders, to brush up on their acronyms. Knowing them—especially a key one—can help investors react to changing policies and protect their money.

At this point, many buyers are taking advantage of the credits at dealerships when they buy a car. In the past, they had to wait to claim it on their taxes the following year. Now, there’s the option of transferring their credit to the dealer and getting an instant rebate.