The Trump administration is undermining the electric vehicle regulatory credit system, dealing a severe blow to companies like Tesla, Rivian, and Lucid. These firms have voiced concerns that the demise of the regulatory credit system will deprive them of a crucial revenue stream from selling credits, thereby significantly impacting their bottom lines. Previously, the US environmental emission reduction program awarded credits to electric vehicle manufacturers, with Tesla, among others, generating profits by selling surplus credits to traditional automakers. However, the Trump administration has reduced penalties for non-compliance to zero, leading to a steep decline in the value of the credit market.