Minnesotans bought a record number of electric vehicles in 2024 — though they lagged the national average — thanks largely to a federal program aimed at boosting sales.
But with President Donald Trump promising a "drill, baby, drill," approach to fossil fuel consumption, the attitude and resources toward promoting electric vehicles has flip-flopped.
On Tuesday, the second day of his presidency, Trump signed an executive order attempting to do away with what he termed a "mandate" for electric vehicles. This aligned with some of his campaign promises of ratcheting back regulations established under former President Joe Biden that were meant to hit targets for carbon reduction and clean energy.
Removal of the federal credit would likely be hard to enact. It would require cooperation from a closely divided Congress to undo a program for a product with growing popularity among consumers.
The number of Minnesotans purchasing electric vehicles has been on the rise, encouraged through the federal tax credit as well as a state-run rebate program.
Scott Lambert, president of the Minnesota Automobile Dealers Association, said the federal tax credit has been a "definite benefit" to manufacturers, auto dealers and consumers seeking those vehicles. But his organization has been opposed to making legal requirements that concern what dealers can sell.
"We're not in favor of mandates," Lambert said.
Lambert also referenced statistics showing softer electric vehicle sales growth compared to hybrid models, which use a combination of electric and gas power.
According to data from the auto dealer group, electric vehicle sales in Minnesota amounted to 6% of the auto sales market in 2024, up from 5.5% in 2023.
Gas-electric hybrids comprised 10% in 2024 vs. 7% in 2023. Traditional vehicles fell to 83% last year, down from 84%.
Minnesota lagged the national trend in sales of fully electric vehicles. Nationally, Kelley Blue Book reported that electric vehicles comprised 8.7% of all vehicle sales last year, with a record 1.3 million electric vehicles sold.
Lambert said electric vehicles are "not big sellers in Minnesota," remaining a "niche" option, as many lack desirable functions like high towing capacity or the ability to keep the gas engine running to warm the vehicle cabin.
"We're not living in southern California," Lambert said, adding many auto dealers have shared great concern about some regulatory requirements enacted out west to phase out sales of gas-powered vehicles.
The Environmental Protection Agency under the Biden administration gave California the go-ahead in December to enact a gas-powered vehicle sales ban effective in 2035. It was stricter than a federal rule that tightened emissions standards.
The federal program now under fire from the Trump administration is not the only program Minnesotans can use to ease the costs of buying an electric vehicle. The state Department of Commerce runs a rebate program to incentivize purchases of new and used electric vehicles.
In March, the agency reported having roughly $2.3 million in leftover rebates that covered Xcel Energy's service area — out of an initial $9.5 million — and a little more than $508,000 from another rebate pool of $4.5 million.
Those rebates have since run dry. The agency's website states it is no longer accepting applications.
In all, the program saw 6,666 applications and approved $15.2 million in rebates, according to the state Department of Commerce.
This story contains material from the Associated Press.