According to Reuters, sources revealed that the next U.S. government plans to reduce fuel efficiency requirements and exhaust emission standards set earlier this year by the U.S. National Highway Traffic Safety Administration and the U.S. Environmental Protection Agency.
One of the sources said that the next U.S. President Trump is expected to formally instruct these agencies to reconsider the Biden administration’s rules.
Sources revealed that Trump plans to cancel the Biden administration’s federal regulations aimed at improving vehicle fuel efficiency and encouraging the transition to electric vehicles.
The move appears to be an attempt to fulfill Trump’s promise during his campaign for U.S. president to “eliminate mandatory regulations on electric vehicles.
” Although the United States has not issued a specific “electric vehicle mandate,” in fact, the Biden administration’s regulations require automakers to produce electric vehicles accounting for at least 35% of their total vehicle production by 2032 and encourage the phasing out of fossil-fuel vehicle production.
, In fact, Trump spent nearly three years in his first term abolishing similar regulations on fuel efficiency standards imposed by former U.S. President Barack Obama.
After Trump called for a review of Obama’s rules in early 2017, the National Highway Traffic Safety Administration and the U.S. Environmental Protection Agency began the formal process of rewriting them in 2018.
It was not until March 2020 that the two agencies finalized less strict regulations and truly relaxed the standards.
In response to the above reports, the Trump team has not responded to requests for comment.
, The move would run counter to the interests of U.S. electric carmaker Tesla, which could profit by selling regulatory points to traditional automakers that are unable to comply with the country’s stricter vehicle emissions regulations.
, Model 3.
Image source: Tesla, Morningstar analyst Goldstein said he expects Tesla will still be able to profit by selling regulatory points to automakers who need to comply with stricter carbon emissions regulations in California and regions such as the European Union.
, However, Goldstein said that before Tesla achieved profitability, sales regulatory points were “particularly important” to the company’s business model, but now, for Tesla, which has achieved profitability and positive free cash flow, sales regulatory points are no longer The company is an indispensable way to make money.
In addition, reports last week said that the Trump team was planning to eliminate a $7,500 tax credit for consumers buying electric vehicles.
This move may also slow down the transformation of electric vehicles in the United States.
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