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It won't necessarily destroy the EV market, but it will make it less competitive. Elon Musk is ok with ending the Federal tax credit because he believes it will hurt Tesla's competitors more than it will hurt Tesla, and that will help Tesla get closer to full monopoly power. Nearly 50% of all EVs sold are Teslas, I expect that to go up.
The company that I think has the best chance to compete with Tesla is GM. Their Ultium platform will allow them to deliver quality EVs at affordable prices. As of Q3 2024, GM is selling the second most EVs, though they are still only selling a fraction of Tesla's numbers.
For EVs, affordability is key, and GM has positioned themselves well to compete with Tesla on price. However, the GM brands aren't exactly the most popular, and it's hard to say if GM will be able to overcome that and convince American EV buyers that GM EVs are worth considering. Which is unfortunate, because GM, of all the legacy, domestic auto makers, has committed themselves to EVs the most.
It'll make US manufacturers uncompetitive while the rest of the world moves on. Even a 100% terrif on imported cars won't be enough to save it.
Also, the new Honda Prologue EV is just a Chevy Blazer, but people are snapping them up. Apparently, the way to sell GM EV is to slap a Honda logo on it.
It's true, Chevy has earned a reputation for being low quality, while Honda has a much better reputation. Also, Chevys are usually just uglier, in my opinion, especially the interiors. I really hope Chevy can use this opportunity to reinvent themselves and start making more desirable vehicles, but in the meantime at least the Ultium platform is selling, in some form.