President-elect Donald Trump's transition team is planning to kill the $7,500 consumer tax credit for electric-vehicle purchases as part of broader tax-reform legislation, two sources with direct knowledge of the matter told Reuters.

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.

Although Tesla applauded the Trump administration's decision to eliminate the $7,500 consumer tax credit for electric vehicle purchases, it was criticized for perhaps making the US electric vehicle transition more difficult.

Trump's transition team is looking to do away with the $7,500 tax credit for EV sales as part of broader tax legislation, Reuters reported.

Some electric vehicles and plug-in hybrids are set to get less affordable from next year, it seems. As expected, the incoming Trump administration has set its sights on killing off the IRS clean vehicle tax credit, according to a report in Reuters this afternoon.

Trump campaigned on ending Biden's "EV mandate," without spelling out specific targeted policies. The energy-focused transition team has determined some of Biden's clean-energy policies will be tough to end because they are popular and already funneling money to Republican-dominated states, the sources said.

Shares of Tesla and other electric vehicle makers fell Thursday after a report President-elect Donald Trump and his transition team are planning to end a $7,500 EV tax credit.