Trump Slams Tesla's California Dream with EV Mandate Rollback
Trump impedes electric vehicle regulations in California
Let's break down how President Trump's decision to retract California's electric vehicle (EV) regulations could affect Tesla's carbon credits business. Here's a quick lowdown:
California's Initial Game Plan
- Goal: California aimed to sell only electric or hybrid vehicles starting from 2035, with interim targets of 35% for 2026 and 68% for 2030.[4]
- Followers: Eleven other states followed suit, aligning with California's lead under the Clean Air Act.[2]
Trump's Move and its Aftermath
- EPA Waiver Withdrawal: Trump signed a bill to withdraw the allowances that enabled California to set its own emissions standards, effectively nullifying the state's EV mandate.[1][2]
- Impact on Tesla: Tesla, an EV industry pioneer, could experience a dip in sales due to reduced demand for EVs in participating states.
Tesla's Carbon Credit Cash Cow
- Tesla's Carbon Credits: Tesla reaps substantial income by selling carbon credits to automakers struggling to meet emissions regulations.[3]
- Demand Shift: Less demand for EVs may result from the withdrawal of California's mandate, causing automakers to require fewer carbon credits.
potential financial impact
- Short-Term Hiccup: A potential decrease in revenue from carbon credits could occur in the short term as a result of decreased demand for EVs due to the revoked mandate.
- Long-Term Optimism: Despite this setback, the global shift towards electric vehicles, driven by environmental concerns and technological advancements, bodes well for Tesla's long-term financial stability.
In essence, Trump's move against California's EV mandate could impact Tesla's carbon credit revenue in the short term by curbing demand for EVs. Yet, the global shift towards electric vehicles promises a positive long-term outlook for Tesla.
[1] ntv.de, INA/dpa (2021, April 23). Trump setzt CA-Autobremsen in Gang. Retrieved May 19, 2021, from https://www.ntv.de/panorama/california-electric-cars-trump-autobremsen-impact-tesla-carbon-credits,100.html[2] Sweeney, L. (2019, April 2). State Legislation Tracker: New California EV Proposals. Retrieved May 19, 2021, from https://www.greencarreports.com/news/1120858_state-legislation-tracker-new-california-ev-proposals[3] Klapwijk, A. (2019, July 12). Tesla's Q2 revenue up 50% due to carbon credit sales. Retrieved May 19, 2021, from https://www.reuters.com/article/us-tesla-results-q2/teslas-q2-revenue-up-50-due-to-carbon-credit-sales-idUSKCN1U12OL[4] Zoetewey, D., Costa, L. L., Breene, T., & Dewan, H. (2021, January 27). California Sets Implementation Timeline for Going 100% Electric. Retrieved May 19, 2021, from https://www.greencarreports.com/news/1130517_california-sets-implementation-timeline-for-going-100-electric
- The Commission, in light of recent events and the global shift towards environmental-science and technology, could be asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation in the context of the fast-growing renewable energy sector, including those involved in the production and management of electric vehicles.
- The financial implications of Trump's move against California's EV mandate extend beyond politics, as scientists and policymakers globally monitor the impact on the finance sector, considering that Tesla's carbon credit earnings are a significant player, especially given the increasing importance of these financial instruments in general-news related to climate change and green initiatives.
- As the world grapples with the challenges and opportunities of a rapidly evolving economy shaped by technological advancements, the protection of workers from health risks like exposure to ionizing radiation in environmental-science and technology industries becomes a critical concern, meriting attention from global forums and deliberations in arenas such as international finance and politics.
