Tesla CEO Elon Musk is on record as supporting the repeal of the EV tax credit, as it would hurt his rivals more than Tesla. But yesterday, Musk decried the fact that the spending bill does not cut subsidies for oil and gas, just EVs and solar.
No fines for you
Yesterday in the Senate, Republicans proposed another new measure that can only be seen as pro-pollution. Should it pass, the EPA would no longer be able to levy fines against carmakers that exceed fleet averages set out in the CAFE regulations. OEMs have paid the government hundreds of millions of dollars in these fines over the past decade. (Note that these fines are different from those imposed on Volkswagen and other automakers for circumventing efficiency standards.)
This would allow OEMs to save money by removing emissions equipment from their products, and it could potentially bring back older powertrains that would otherwise be prohibited on the roads. Tesla may well be the biggest loser here, as the bill removes incentives for other automakers to purchase carbon credits. The GOP is also attacking California’s ability to set its own emissions standards. That would remove another major source of emissions credits for Tesla, which are, again, increasingly important in keeping the company’s books out of the red.
Over at the Department of Transportation, similar efforts are underway. Secretary Sean Duffy’s first action as the head of DOT was to begin reviewing Biden-era fuel efficiency regulations, and today, the department decided that it makes no sense to include EVs as part of its CAFE rules.
At this rate, it’s a wonder they’re not trying to mandate coal-fired steam engines as an alternative.
