Ford Motor Company ( F ) shares are trading lower Monday. Investors appear to be reacting to comments from executive chair Bill Ford warning that a Republican-led tax proposal could jeopardize the company's $3 billion EV battery project in Michigan.

What To Know: At a policy conference late last week, Ford said the potential elimination of production tax credits tied to electric vehicle batteries could “imperil” construction of the Marshall battery plant.

According to Reuters, the factory, which is 60% complete and expected to begin production in 2026, would employ 1,700 workers and rely on technology from Chinese battery manufacturer CATL. The partnership has already drawn political scrutiny due to its Chinese ties.

The concern arises from a provision in a House-passed tax reform bill that would bar tax credits for EV batteries made with components from certain Chinese companies or produced under their licenses. Ford stated that the company made its investment based on current policy and argued it's unfair for the government to change incentives after significant capital has already been deployed.

In addition to threatening Ford's plant-specific tax credits, the bill would repeal the $7,500 consumer tax credit for new EV purchases, introduce a $250 annual EV fee to fund road repairs, and reverse vehicle emissions rules aimed at encouraging EV production. These changes could weaken the broader U.S. EV market, further impacting Ford's long-term electrification strategy.

Meanwhile, broader pressure on automakers intensified on Monday after President Donald Trump on Friday stated that all vehicles and parts must be built entirely in the U.S. going forward, according to a separate report from Reuters.

The Trump administration slapped a 25% tariff on imported vehicles and parts earlier this year, further complicating global supply chains for companies like Ford. Trump also announced Friday that he would double steel and aluminum tariffs from 25% to 50%, which may be adding to concerns for automakers.

F Price Action: Ford shares were down 4.19% at $9.94 at the time of publication Monday, according to Benzinga Pro.

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