South Korean automaker Hyundai Motor Co‘s HYMTF incoming CEO Jose Munoz is optimistic about the future of electric vehicles despite fears of EV tariffs and incentives getting dropped or reduced under the upcoming Donald Trump presidency.

What Happened: Hyundai decided to make a big investment in America during the previous Trump administration before the introduction of the Inflation Reduction Act (IRA) which provides incentives for the manufacturing of electric vehicles in the U.S., Munoz said in an interview with CNBC.

“The fact that Elon Musk is so close to Trump is probably good for electric vehicles, not bad. We are not planning our business based on incentives. We want to produce really great vehicles with great features,” he said. Munoz’s appointment as co-CEO of Hyundai will be effective from January.

Why It Matters: In November 2023, Hyundai announced that it would invest $12.6 billion in EV and battery manufacturing facilities in Georgia, making it its largest investment outside South Korea. The first electric vehicle rolled off the assembly line in Georgia in October.

Earlier this week, the company unveiled its Ioniq 9 three-row SUV which will roll out in the U.S. early next year. The Ioniq 9 will be up against other 3-row SUVs from rival automakers including Lucid Motors and General Motors and will be manufactured in Georgia.

Hyundai now aims to have a lineup of 23 EV models by 2030.

Meanwhile, Wedbush analyst Dan Ives said Trump’s plan to get rid of consumer tax credits for EVs is actually not positive for Tesla TSLA. Eliminating the EV tax credit could pose a major challenge to the United States’ EV transition. However, Musk, a prominent supporter of Trump, has reportedly expressed his support to Trump’s team for ending the EV tax credit.

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