Latest news with #SafeClimateTransportCampaign
Axios
7 hours ago
- Automotive
- Axios
Threats to Tesla's revenue are piling up
Tesla faces fresh risks to a big income stream: sales of regulatory credits to other automakers under vehicle emissions and efficiency rules. Why it matters: Tesla's credit sales were $595 million last quarter and totaled $3.36 billion in the five quarters through Q1 of 2025. The credits are awarded to companies like Tesla that exceed emissions standards. Producers of gas-powered vehicles buy them to help meet various CO2 and mileage standards. The latest: Republicans on the Senate's commerce committee late last week proposed ending civil penalties under the Transportation Department's fuel economy rules. It's part of the committee's portion of the budget "reconciliation" bill — the top GOP and White House legislative priority. The provision would "modestly" cut auto prices by ending penalties on automakers that now "design cars to conform to the wishes of DC bureaucrats rather than consumers," a GOP summary states. The intrigue:"This Senate action would effectively end the market for CAFE credits," Chris Harto, a senior policy analyst at Consumer Reports, tells Axios via email. Dan Becker, who heads the Safe Climate Transport Campaign at the Center for Biological Diversity, noted: "Why buy credits if Trump gives you a get out of CAFE free card?" Driving the news: Separately, DOT on Friday issued an "interpretive rule" that bars consideration of EVs when it sets these mileage rules. It's a step toward crafting replacement standards, DOT said. This paves the way for less aggressive requirements — and less need for buying credits. State of play: Several buckets of credits benefit Tesla, the dominant U.S. EV seller. EPA emissions standards, Transportation Department fuel economy mandates, and California's ambitious clean cars program all provide opportunities. European emissions rules also generate credits. The big picture: The regulatory credit market was already facing risks before all the news late last week. EPA is planning to rescind Biden-era EPA carbon emissions rules for model years 2027 and onward. The House-passed reconciliation bill and the Senate GOP proposal would also nix them. And the House bill pulls back Biden-era DOT mileage rules. Both chambers have passed measures that end EPA's approval of California's auto emissions rules. Threat level: Potential loss of credit revenues comes at a perilous time for Tesla. Its sales have slumped in recent quarters, and CEO Elon Musk's rightward turn and alliance with Trump are among the reasons why, analysts say. The House plan ends $7,500 consumer purchase subsidies for EVs under the Democrats' 2022 Inflation Reduction Act. By the numbers: Credit revenues exceeded Tesla's overall profit last quarter — in other words, it would have been in the red without them. Yes, Q1 was atypically weak for Tesla, but consider Q4 of 2024, when Tesla reported $2.13 billion in profits that were helped along by $692 million in credit sales. In Q3, those numbers were $2.17B and $739M, respectively. Friction point: More broadly, the meltdown of Tesla CEO Elon Musk's relationship with Trump also creates new and unpredictable risks for the billionaire entrepreneur's business empire.
Yahoo
29-01-2025
- Automotive
- Yahoo
Things to know about the Trump administration order on car and pickup fuel economy
DETROIT (AP) — Hours after being sworn in as the new U.S. Secretary of Transportation, Sean Duffy took aim at the main way the federal government regulates miles per gallon for cars and pickup trucks — also a principal way that it regulates air pollution and addresses climate change. Duffy ordered the federal agency in charge of fuel economy standards to reverse them as soon as possible. The standards have been in place since the 1970s energy crisis and were intended to conserve fuel and save consumers money at the gas pump. Here are five reasons why the action matters. What is the Trump administration doing exactly? Duffy ordered his chief of the National Highway Traffic Safety Administration to "propose the rescission or replacement of any fuel economy standards" necessary to bring the rules in line with Trump's priority of promoting oil and biofuel. The order came in a DOT memorandum Tuesday night. Duffy said the rules need to better align with the administration's overarching agenda because 'the existing CAFE standards promulgated by NHTSA are contrary to Administration policy.' What does this mean for consumers and the climate? Duffy says eliminating the rules will increase Americans' access to the full range of gasoline vehicles they need and can afford. Others disagree. 'This will raise consumer's costs at the pump, increase tailpipe pollution and jeopardize U.S. automakers' future, and no one voted for any of it. The only beneficiaries will be oil executives and China's auto industry, which will be happy to sell electric vehicles around the world with little U.S. competition,' said Dan Becker, director of the Center for Biological Diversity's Safe Climate Transport Campaign. In recent years, automakers have been producing gasoline cars that get significantly better mileage, which lowers the cost of driving and means lower sales for oil companies — both refineries and producers. Transportation was the largest contributor to U.S. greenhouse gas emissions in 2022, according to the Environmental Protection Agency. Every atom of carbon pumped into a car's gas tank comes out the tailpipe and many combine with oxygen to make carbon dioxide which holds onto extra heat for more than a century. Why does Trump want to repeal fuel efficiency rules? Duffy's action aligns with a number of President Trump's promises, notably to end an 'electric vehicle mandate' — referring to former President Joe Biden's target for 50% of new car sales to be electric by 2030. Duffy wrote 'These fuel economy standards are set as such aggressive levels that automakers cannot, as a practical matter, satisfy the standards without rapidly shifting production away from internal-combustion-engine vehicles to alternative electric technologies.' The new Secretary said 'artificially high' standards force car manufacturers to phase out gasoline powered vehicles, making cars more expensive for buyers and 'destroying consumer choice at the dealership.' There is no requirement for automakers to produce or consumers to purchase electric vehicles. The fuel economy standards work in sync with EPA limits on carbon dioxide from vehicle tailpipes to address climate change, which Trump also rejects. Duffy said CAFE rules are supposed to establish realistic rules for fleets 'that run on combustible liquid fuels like gasoline and diesel fuel.' He also cited the nation's vast oil reserves, biofuel feedstocks and refining capacity as reason to establish lower standards. Trump has issued a series of orders including an energy emergency declaration, and has said the U.S. will 'drill, baby, drill.' What's the idea behind American fuel economy standards? CAFE, or Corporate Average Fuel Economy, rules date back to oil shocks Americans suffered in 1974 and 1980. The first ones went into effect in 1978. They are intended to help drivers use less fuel by requiring automakers' fleets to meet average mile-per-gallon targets that initially increased with each model year, until progress stalled in the 1980s. Americans then saw no appreciable improvement in miles per gallon for around two decades. In recent years, automakers have offered car-buyers plenty of internal combustion engine — meaning gasoline-powered — cars with much better mileage, and that is largely due to increasingly stringent standards. What were the latest fuel economy rules going to do? The latest standards set under the Biden administration required automakers to average about 38 miles per gallon of gas by 2031. That's in real-world driving. In every model year from 2027 to 2031, the rules are supposed to increased fuel economy 2% per year for passenger cars, while SUVs and other light trucks are set to increase by 2% a year from 2029 to 2031. An earlier proposal had even higher requirements. The standards aligned with tighter Biden-era EPA limits on pollution from passenger and commercial vehicles, and the former president's broader support for incentivizing electric vehicle manufacturing and purchases. The Biden administration said when it made the rules they would save almost 70 billion gallons of gasoline through 2050. ___ Alexa St. John is an Associated Press climate solutions reporter. Follow her on X: @alexa_stjohn. Reach her at ___ Read more of AP's climate coverage at ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
The Hill
29-01-2025
- Automotive
- The Hill
Things to know about the Trump administration order on car and pickup fuel economy
DETROIT (AP) — Hours after being sworn in as the new U.S. Secretary of Transportation, Sean Duffy took aim at the main way the federal government regulates miles per gallon for cars and pickup trucks — also a principal way that it regulates air pollution and addresses climate change. Duffy ordered the federal agency in charge of fuel economy standards to reverse them as soon as possible. The standards have been in place since the 1970s energy crisis and were intended to conserve fuel and save consumers money at the gas pump. Here are five reasons why the action matters. What is the Trump administration doing exactly? Duffy ordered his chief of the National Highway Traffic Safety Administration to 'propose the rescission or replacement of any fuel economy standards' necessary to bring the rules in line with Trump's priority of promoting oil and biofuel. The order came in a DOT memorandum Tuesday night. Duffy said the rules need to better align with the administration's overarching agenda because 'the existing CAFE standards promulgated by NHTSA are contrary to Administration policy.' What does this mean for consumers and the climate? Duffy says eliminating the rules will increase Americans' access to the full range of gasoline vehicles they need and can afford. Others disagree. 'This will raise consumer's costs at the pump, increase tailpipe pollution and jeopardize U.S. automakers' future, and no one voted for any of it. The only beneficiaries will be oil executives and China's auto industry, which will be happy to sell electric vehicles around the world with little U.S. competition,' said Dan Becker, director of the Center for Biological Diversity's Safe Climate Transport Campaign. In recent years, automakers have been producing gasoline cars that get significantly better mileage, which lowers the cost of driving and means lower sales for oil companies — both refineries and producers. Transportation was the largest contributor to U.S. greenhouse gas emissions in 2022, according to the Environmental Protection Agency. Every atom of carbon pumped into a car's gas tank comes out the tailpipe and many combine with oxygen to make carbon dioxide which holds onto extra heat for more than a century. Why does Trump want to repeal fuel efficiency rules? Duffy's action aligns with a number of President Trump's promises, notably to end an 'electric vehicle mandate' — referring to former President Joe Biden's target for 50% of new car sales to be electric by 2030. Duffy wrote 'These fuel economy standards are set as such aggressive levels that automakers cannot, as a practical matter, satisfy the standards without rapidly shifting production away from internal-combustion-engine vehicles to alternative electric technologies.' The new Secretary said 'artificially high' standards force car manufacturers to phase out gasoline powered vehicles, making cars more expensive for buyers and 'destroying consumer choice at the dealership.' There is no requirement for automakers to produce or consumers to purchase electric vehicles. The fuel economy standards work in sync with EPA limits on carbon dioxide from vehicle tailpipes to address climate change, which Trump also rejects. Duffy said CAFE rules are supposed to establish realistic rules for fleets 'that run on combustible liquid fuels like gasoline and diesel fuel.' He also cited the nation's vast oil reserves, biofuel feedstocks and refining capacity as reason to establish lower standards. Trump has issued a series of orders including an energy emergency declaration, and has said the U.S. will 'drill, baby, drill.' What's the idea behind American fuel economy standards? CAFE, or Corporate Average Fuel Economy, rules date back to oil shocks Americans suffered in 1974 and 1980. The first ones went into effect in 1978. They are intended to help drivers use less fuel by requiring automakers' fleets to meet average mile-per-gallon targets that initially increased with each model year, until progress stalled in the 1980s. Americans then saw no appreciable improvement in miles per gallon for around two decades. In recent years, automakers have offered car-buyers plenty of internal combustion engine — meaning gasoline-powered — cars with much better mileage, and that is largely due to increasingly stringent standards. What were the latest fuel economy rules going to do? The latest standards set under the Biden administration required automakers to average about 38 miles per gallon of gas by 2031. That's in real-world driving. In every model year from 2027 to 2031, the rules are supposed to increased fuel economy 2% per year for passenger cars, while SUVs and other light trucks are set to increase by 2% a year from 2029 to 2031. An earlier proposal had even higher requirements. The standards aligned with tighter Biden-era EPA limits on pollution from passenger and commercial vehicles, and the former president's broader support for incentivizing electric vehicle manufacturing and purchases. The Biden administration said when it made the rules they would save almost 70 billion gallons of gasoline through 2050. ___ Alexa St. John is an Associated Press climate solutions reporter. Follow her on X: @alexa_stjohn. Reach her at ___ ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
The Independent
29-01-2025
- Automotive
- The Independent
Things to know about the Trump administration order on car and pickup fuel economy
Hours after being sworn in as the new U.S. Secretary of Transportation, Sean Duffy took aim at the main way the federal government regulates miles per gallon for cars and pickup trucks — also a principal way that it regulates air pollution and addresses climate change. Duffy ordered the federal agency in charge of the fuel economy standards to reverse them as soon as possible. The standards have been in place since the 1970s oil energy crisis and were intended to conserve fuel and save consumers money at the gas pump. Here are five reasons why the Trump administration's action matters. What is the Trump administration doing exactly? Duffy ordered his chief of the National Highway Traffic Safety Administration to "propose the recission or replacement of any fuel economy standards" necessary to bring the rules into line with Trump's priority of promoting oil and biofuel. The order came in a DOT memorandum Tuesday night. Duffy said the rules need to better align with the administration's overarching agenda because 'the existing CAFE standards promulgated by NHTSA are contrary to Administration policy.' What does this mean for consumers and the climate? Duffy says eliminating the rules will increase Americans ' access to the full range of gasoline vehicles they need and can afford. Others disagree. 'This will raise consumer's costs at the pump, increase tailpipe pollution and jeopardize U.S. automakers' future, and no one voted for any of it. The only beneficiaries will be oil executives and China's auto industry, which will be happy to sell electric vehicles around the world with little U.S. competition,' said Dan Becker, director of the Center for Biological Diversity's Safe Climate Transport Campaign. In recent years, automakers have been producing gasoline cars that get significantly better mileage, which lowers the cost of driving and means lower sales for oil companies — both refineries and producers. Transportation was the largest contributor to U.S. greenhouse gas emissions in 2022, according to the Environmental Protection Agency. Every atom of carbon pumped into a car's gas tank comes out the tailpipe and many combine with oxygen to make carbon dioxide which holds onto extra heat for more than a century. Why does Trump want to repeal fuel efficiency rules? Duffy's action aligns with a number of President Trump's promises, notably to end an 'electric vehicle mandate' — referring to former President Joe Biden's target for 50% of new car sales to be electric by 2030. Duffy wrote 'These fuel economy standards are set as such aggressive levels that automakers cannot, as a practical matter, satisfy the standards without rapidly shifting production away from internal-combustion-engine vehicles to alternative electric technologies.' The new Secretary said 'artificially high' standards force car manufacturers to phase out gasoline-powered vehicles, make cars more expensive for buyers and are 'destroying consumer choice at the dealership.' There is no requirement for automakers to produce or consumers to purchase electric vehicles. The fuel economy standards work in sync with EPA limits on carbon dioxide from vehicle tailpipes to address climate change, which Trump also rejects. Duffy said CAFE rules are supposed to establish realistic rules for fleets 'that run on combustible liquid fuels like gasoline and diesel fuel.' He also cited the nation's vast oil reserves, biofuel feedstocks and refining capacity as reason to establish lower standards. Trump has issued a series of orders including an energy emergency declaration, and has said the U.S. will 'drill, baby, drill.' What's the idea behind American fuel economy standards? CAFE, or Corporate Average Fuel Economy, rules date back to oil shocks Americans suffered in 1974 and 1980. The first ones went into effect in 1978. They are intended to help drivers use less fuel. They do this by requiring automakers' fleets to meet average mile-per-gallon targets that initially increased with each model year, until progress stalled in the 1980s. Americans then saw no appreciable improvement in miles per gallon for around two decades. In recent years, automakers have offered car-buyers plenty of internal combustion engine — meaning gasoline-powered — cars with much better mileage, and that is largely due to increasingly stringent standards. What were the latest fuel economy rules going to do? The latest standards set under the Biden administration required automakers to average about 38 miles per gallon of gas by 2031. That's in real-world driving. Every model year from 2027 to 2031, the rules are supposed to increased fuel economy 2% per year for passenger cars, while SUVs and other light trucks are set to increase by 2% a year from 2029 to 2031. An earlier proposal had even higher requirements. The standards aligned with tighter Biden-era EPA limits on pollution from passenger and commercial vehicles, and the former president's broader support for incentivizing electric vehicle manufacturing and purchases. The Biden administration said when it made the rules they would save almost 70 billion gallons of gasoline through 2050. ___ Alexa St. John is an Associated Press climate solutions reporter. Follow her on X: @alexa_stjohn. Reach her at ___ ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
Associated Press
29-01-2025
- Automotive
- Associated Press
Things to know about the Trump administration order on car and pickup fuel economy
DETROIT (AP) — Hours after being sworn in as the new U.S. Secretary of Transportation, Sean Duffy took aim at the main way the federal government regulates miles per gallon for cars and pickup trucks — also a principal way that it regulates air pollution and addresses climate change. Duffy ordered the federal agency in charge of the fuel economy standards to reverse them as soon as possible. The standards have been in place since the 1970s oil energy crisis and were intended to conserve fuel and save consumers money at the gas pump. Here are five reasons why the Trump administration's action matters. What is the Trump administration doing exactly? Duffy ordered his chief of the National Highway Traffic Safety Administration to 'propose the recission or replacement of any fuel economy standards' necessary to bring the rules into line with Trump's priority of promoting oil and biofuel. The order came in a DOT memorandum Tuesday night. Duffy said the rules need to better align with the administration's overarching agenda because 'the existing CAFE standards promulgated by NHTSA are contrary to Administration policy.' What does this mean for consumers and the climate? Duffy says eliminating the rules will increase Americans' access to the full range of gasoline vehicles they need and can afford. Others disagree. 'This will raise consumer's costs at the pump, increase tailpipe pollution and jeopardize U.S. automakers' future, and no one voted for any of it. The only beneficiaries will be oil executives and China's auto industry, which will be happy to sell electric vehicles around the world with little U.S. competition,' said Dan Becker, director of the Center for Biological Diversity's Safe Climate Transport Campaign. In recent years, automakers have been producing gasoline cars that get significantly better mileage, which lowers the cost of driving and means lower sales for oil companies — both refineries and producers. Transportation was the largest contributor to U.S. greenhouse gas emissions in 2022, according to the Environmental Protection Agency. Every atom of carbon pumped into a car's gas tank comes out the tailpipe and many combine with oxygen to make carbon dioxide which holds onto extra heat for more than a century. Why does Trump want to repeal fuel efficiency rules? Duffy's action aligns with a number of President Trump's promises, notably to end an 'electric vehicle mandate' — referring to former President Joe Biden's target for 50% of new car sales to be electric by 2030. Duffy wrote 'These fuel economy standards are set as such aggressive levels that automakers cannot, as a practical matter, satisfy the standards without rapidly shifting production away from internal-combustion-engine vehicles to alternative electric technologies.' The new Secretary said 'artificially high' standards force car manufacturers to phase out gasoline-powered vehicles, make cars more expensive for buyers and are 'destroying consumer choice at the dealership.' There is no requirement for automakers to produce or consumers to purchase electric vehicles. The fuel economy standards work in sync with EPA limits on carbon dioxide from vehicle tailpipes to address climate change, which Trump also rejects. Duffy said CAFE rules are supposed to establish realistic rules for fleets 'that run on combustible liquid fuels like gasoline and diesel fuel.' He also cited the nation's vast oil reserves, biofuel feedstocks and refining capacity as reason to establish lower standards. Trump has issued a series of orders including an energy emergency declaration, and has said the U.S. will 'drill, baby, drill.' What's the idea behind American fuel economy standards? CAFE, or Corporate Average Fuel Economy, rules date back to oil shocks Americans suffered in 1974 and 1980. The first ones went into effect in 1978. They are intended to help drivers use less fuel. They do this by requiring automakers' fleets to meet average mile-per-gallon targets that initially increased with each model year, until progress stalled in the 1980s. Americans then saw no appreciable improvement in miles per gallon for around two decades. In recent years, automakers have offered car-buyers plenty of internal combustion engine — meaning gasoline-powered — cars with much better mileage, and that is largely due to increasingly stringent standards. What were the latest fuel economy rules going to do? The latest standards set under the Biden administration required automakers to average about 38 miles per gallon of gas by 2031. That's in real-world driving. Every model year from 2027 to 2031, the rules are supposed to increased fuel economy 2% per year for passenger cars, while SUVs and other light trucks are set to increase by 2% a year from 2029 to 2031. An earlier proposal had even higher requirements. The standards aligned with tighter Biden-era EPA limits on pollution from passenger and commercial vehicles, and the former president's broader support for incentivizing electric vehicle manufacturing and purchases. The Biden administration said when it made the rules they would save almost 70 billion gallons of gasoline through 2050. ___ ___ ___
