The Guardian reports that Tesla has been privately warning the UK government that plans to weaken electric vehicle (EV) policies could harm EV sales and hinder the country's progress toward climate goals. It seems clear that less ambitious EV policies would likely result in fewer EV sales and reduced CO2 reductions.
The key takeaway is that Tesla is actively encouraging the government to adopt smarter policies. According to The Guardian, the Labour government in April alarmed some electric carmakers by relaxing the zero-emission vehicle (ZEV) mandate, which requires increasing EV sales each year. New loopholes now allow carmakers to sell more petrol and diesel vehicles. Additionally, recent taxes on electric cars could further dampen demand, critics argue.
Earlier this year, Tesla and other automakers submitted feedback during a government consultation. Tesla emphasized that it was "essential" for the government to avoid introducing loopholes, or "flexibilities," to the EV mandate. The company also advocated for support of the used-car market to help accelerate the transition to EVs, noting that making it easier to resell EVs would encourage more people to purchase new ones.
All of these points are straightforward. Whether Tesla can influence the Labour government remains uncertain, but it is clear that the Labour Party should focus on advancing clean technology solutions rather than slowing progress.
In contrast, the situation in the USA is markedly different. The Elon Musk-supported Trump administration has taken steps in the opposite direction. Recent news highlights that, after eliminating consumer subsidies for both new and used EVs, the Trump administration is now seeking to weaken the country's already modest fuel economy standards, which had provided some incentive for automakers to produce and sell more EVs. According to Reuters, the National Highway Traffic Safety Administration is expected to propose significantly reducing fuel economy requirements for 2022-2031 model-year vehicles. President Donald Trump is set to announce this plan at a White House event with executives from the three largest US automakers. Earlier this year, Trump signed legislation ending fuel economy penalties for automakers, and NHTSA confirmed that no fines would be imposed dating back to the 2022 model year.
These actions represent a strong anti-EV stance, going far beyond what Tesla is urging the UK government to avoid.
It is worth noting that the higher fuel economy standards approved by President Biden were projected to save drivers $35.2 billion. Reuters also reports that Stellantis paid $190.7 million in civil penalties in 2024 for failing to meet fuel economy requirements in 2019 and 2020, and nearly $400 million for violations from 2016 to 2019. General Motors also paid $128.2 million in penalties for not meeting standards in 2016 and 2017.
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