Trump's Ambush on Tesla: Halting California's Electric Car Mandates
Trump impedes California's regulations on electric vehicles.
Get ready for some gas-guzzling cars in California from 2035. You heard it right, the US President, Donald Trump, has pulled the plug on California's plan to phase out internal combustion engine vehicles. This move escalates tensions with California's Governor, Gavin Newsom, and ain't nobody happy, especially Tesla. California swiftly retaliated by suing the Trump administration.
The Golden State has been setting its own emissions standards since the '70s, with a goal to reach all-electric or hybrid vehicles by 2035. Trump, who finds this goal a "disaster," signed off on the resolutions passed by Republican Congress. California's ambitions have been a thorn in Trump's side for quite a while, even drawing criticism from the automotive industry, who feel these standards would spell doom for businesses beyond California's borders. Notably, California is the biggest market for electric vehicles in the USA, accounting for a quarter of new registrations, according to official figures.
Sticking it to Tesla
Tesla, once a close ally of Musk, might face a financial hit from this decision. In a way, this electric car manufacturer has been reaping the benefits of California's car mandates. As a pure electric vehicle manufacturer, Tesla doesn't need carbon credits, but they've been selling them, bringing in a whopping $595 million in the last quarter alone. Trump's dismantling of California's goals deals a blow to this business.
Musk, who donated over $250 million to Trump's campaign, has lately locked horns with Trump over tax and spending policies. Musk openly criticized Trump online, but later apologized publicly. Trump, on the other hand, still calls Musk a "friend," but added Musk had become "a bit strange." Trump also insists that Musk did not try to dissuade him from abolishing the electric car target.
The friction between Trump and California's Governor, Newsom, kicked off when Trump ordered the deployment of National Guard and Marine Corps personnel in LA against California and the city's wishes. In response, California sued the federal government, as California's Attorney General, Rob Bonta, put it, "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."
Source: ntv.de, ino/dpa
- Electric Vehicles
- Tesla Motors
- USA
- California
- Donald Trump
- ICE Phase-Out
Insights
- The move to halt California's electric car mandates may lead to regulatory uncertainty, affecting the pace of the transition to electric vehicles across states.
- Tesla, despite being well-positioned to adapt to changing regulations, may face impacted demand in states following California's lead.
- Prolonged legal battles due to California's lawsuit against the federal government could delay the implementation of new emissions standards.
- The trucking industry, represented by groups like the OOIDA, shows support for the decision, citing the current impracticality of electric trucks.
- The decision could impact overall environmental goals by allowing states to relax emissions standards, potentially increasing greenhouse gas emissions.
- The decision might influence investment in EV infrastructure and technology, requiring companies like Tesla to reassess their strategies in response to changing federal policies.
- The automotive industry, including the trucking industry, has praised Trump's decision to halt California's electric car mandates, with groups like the OOIDA citing the current impracticality of electric trucks.
- Trump's move to dismantle California's plans for electric vehicles could potentially lead to changes in investment strategies for technology companies like Tesla Motors, necessitating a reevaluation of their EV infrastructure and business tactics in response to new federal policies.
- The ongoing legal battle between California and the federal government could impose delays in the implementation of new emissions standards, causing regulatory uncertainty for businesses within the industry, finance, and technology sectors, as well as political debates in general-news.
