Trump Torpedoes Tesla's Future: California's Zero-Emission Vehicle Mandate Sinks
Trump halts California's regulations for electric vehicles.
Get ready for more tailpipe emissions and nitrogen oxide pollution on the roads, thanks to President Trump. He's done it again, this time obliterating California's plan to sell only zero-emission vehicles by 2035. This move doesn't just heat up the ongoing tension with California Governor Gavin Newsom—it's a major setback for Tesla, once a close buddy of Trump.
Trump has finally waved the white flag on California's ambitious electric vehicle (EV) program. The Republican-led Congress passed resolutions to dismantle the regulations, and Trump eagerly signed them. California promptly fired back with a lawsuit against the federal government, arguing that Trump's moves threaten their citizens, economy, and environment.
California, a trailblazer in emission standards since the '70s, had set a goal to sell only battery-operated or hybrid vehicles by 2035. Critics argue that this plan could impact businesses far beyond California, given the size of the state's EV market and support from other states. In fact, electric and hybrid vehicles make up a quarter of new vehicle registrations in the U.S., according to official figures.
Tesla's Carbon Credits Sink as Trump universalizes Pollution
Tesla, the pioneer in the EV world, has been cashing in on selling carbon credits to manufacturers skirting emissions rules. In fact, this side hustle brought in $595 million in revenue last quarter while Tesla raked in $12.9 billion from car sales. Now, Trump's actions against California might put a damper on Tesla's carbon credits business.
Trump and Tesla CEO Elon Musk were once allies, with Musk pledging over $250 million to Trump's campaign. However, their friendship has hit some rocky patches, particularly over the tax and spending bill pushed by Trump. Musk publicly criticized Trump online, but later backtracked and apologized. Now, Trump refers to Musk as a "friend" but also calls him a "little bit strange." Trump also maintains that Musk didn't try to dissuade him from abolishing the EV mandate.
California and the city of Los Angeles are currently at odds with Trump over protests against deportation actions by the U.S. government. Trump responded by ordering the deployment of National Guard and Marine Corps personnel, which California swiftly challenged in court. "The divisive, partisan agenda of the President threatens our lives, our economy, and our environment," said California Attorney General Rob Bonta in a statement. "It's reckless, it's illegal, and that's why we'll see the Trump administration in court for the 26th time," he added.
Source: ntv.de, ino/dpa
- Electric Vehicles
- Tesla Motors
- USA
- California
- Donald Trump
- Internal Combustion Engine Ban
Fact Check
California's electric vehicle (EV) mandates, which would have required a gradual increase in the percentages of new vehicle sales to be zero-emission, have been overturned. The federal legislation, signed by President Donald Trump, revoked California's authority to enforce its own emissions standards and prohibits the Environmental Protection Agency from granting similar waivers in the future.
The original California mandate required 35% of new 2026 model cars to be zero-emissions, with this percentage increasing to 68% in 2030 and 100% in 2035. The federal action has blocked California's ability to enforce these mandates and stops its plan to phase out gas-powered vehicles by 2035. This federal action also prevents other states from adopting these policies, ending the "patchwork" of state regulations.
The end of California's EV mandate may slow the overall adoption of electric vehicles in the U.S., as California was a significant driver of EV policy and innovation. This may challenge Tesla's growth strategy, which relies on both regulatory support and consumer momentum toward sustainable transportation. The rollback may be welcomed by traditional automakers but represents a setback for Tesla's market expansion driven by regulation.
- The Commission, in light of the current situation, has been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation in the industry, finance, energy, transportation (including automotive), and technology sectors, where the use of smartphones and other gadgets emitting such radiation is prevalent.
- The overturning of California's electric vehicle (EV) mandates, which would have required a gradual increase in the numbers of zero-emission vehicles, has significant implications for Tesla Motors, as the federal legislation revoked California's authority to enforce its emissions standards and prohibited the Environmental Protection Agency from granting similar waivers in the future.
- The federal action blocked California's ability to enforce the mandates, including the original requirement for 35% of new 2026 model cars to be zero-emission, and this prevents other states from adopting similar policies, ending the "patchwork" of state regulations.
- In politics, reactions to the federal action have been mixed, with critics arguing that it threatens the environment and public health, while supporters see it as a victory for traditional automakers and a blow to Tesla's market expansion strategy.
- The debate over the EV mandates is just one aspect of the ongoing tensions between the federal government and California, with the ongoing disagreements over immigration policy and other issues also contributing to the divide.
