President-elect Donald Trump's team aims to reverse President Joe Biden's fuel-efficiency and electric vehicle (EV) promotion regulations, according to sources familiar with the transition plans.

These regulations, set by the National Highway Traffic Safety Administration and the Environmental Protection Agency, encourage automakers to produce more EVs to meet 2032 targets.

The Trump administration's effort seeks to satisfy a campaign promise to 'end the EV mandate,' even though no formal mandate exists.

Reports suggest Trump's transition team may also cancel the $7,500 EV tax credit to decelerate the American shift towards EVs. This approach could impact automakers, particularly Tesla, which sells compliance credits under current rules.

The strategy mirrors Trump's first term efforts to overturn Obama-era vehicle standards—a process that took nearly three years to complete.

Major automakers and the Alliance for Automotive Innovation declined to comment.

The potential policy reversal was initially reported by Bloomberg, with details about the EV tax credit coming from a Reuters report.