Trump Takes Down Tesla's Friend: California's Electric Car Mandates Scrapped
Trump opposes California's regulations on electric vehicles.
Watch out, Tesla! President Trump has efficiently axed California's ambitious plan to phase out only internal combustion engine cars by 2035. What started as a thorn in Trump's side has now erupted into a full-blown feud, likely costing Tesla dearly.
The most populous U.S. state has historically had the authority to set stricter emissions standards since the 70s. California's aim was to go all-electric or hybrid by 2035—a move that's been driving Trump crazy. Unsurprisingly, he called it a "disaster for this country" when putting an end to it.
California immediately took Trump and his Republicans to court over their decision, refusing to back down. Critics claim that this change would profoundly influence business beyond California's borders, given its mammoth market share and support from other states. Electric and hybrid cars account for a quarter of new registrations in the U.S., as per official figures [1][2].
Trump vs. Musk: A Twist in their Tale
Billionaire entrepreneur Elon Musk, Tesla's CEO, was once a close ally of Trump. However, they became adversaries over the tax and spending bill pushed by Trump [3]. Musk publicly criticized Trump online but later apologized. Trump, acknowledging their past friendship, now calls Musk a "friend" again, but adds that he's "acting a bit strange." He also denies any interference from Musk in abolishing the electric car goal [3].
The latest spat stems from Trump's intervention in immigration enforcement actions, particularly in Los Angeles. Trump deployed National Guard and Marine Corps personnel there against California and the city's wishes [4]. California swiftly responded with a lawsuit, stating, "The divisive, partisan agenda of the President threatens our lives, our economy, and our environment. It's reckless, it's illegal, and that's why we'll see the Trump administration in court for the 26th time."
Setback for Tesla's Carbon Credits Trading
Tesla had been raking in profits by selling carbon credits for CO2 emissions to other manufacturers. As a pure electric vehicle manufacturer, it didn't need them, and this brought in revenues of $595 million alone in the last quarter—all while making $12.9 billion in car sales [3].
However, Trump's pushback against California may put a damper on this side business for Tesla. It remains to be seen how California's legal challenge and potential regulatory changes will unfold for Tesla [1][2].
U.S. Politics Electric Cars Tesla Motors California Donald Trump Internal Combustion Engine Phase-out
Noteworthy Details:1. California's electric car mandate aimed to gradually increase zero-emission vehicles sold in the state, culminating in 100% by 2035 [3][4].2. The federal government justified the repeal of the mandate on constitutional grounds, arguing that California's regulations could interfere with federal power to regulate vehicle emissions [2].3. California immediately sued the Trump administration for blocking its clean-air rules, indicating a continued push for stricter environmental regulations [5].4. The ongoing legal battle between California and the federal government could generate further regulatory changes, creating uncertainty for all automakers, including Tesla [5].
- In spite of Tesla's positive relationship with Trump in the past, the recent disagreement over California's electric car mandate has added another layer to their adversarial relationship, potentially impacting Tesla's profits from carbon credits trading.
- The Commission, given its recent request to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation, may face increased scrutiny in the context of the environmental-science implications of the electric car mandate dispute.
- The political climate in the U.S., particularly Trump's decision to scrap California's electric car mandate, has stirred controversy in the general-news arena, with debates around science, technology, finance, and the environment rising to the fore.
