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Trump Imposes Halt on California's Auto Emission Standards for Electric Vehicles

Inauspicious turn for Tesla vehicles

Tesla's dual ventures, cars and CO2 credits, could face potential setbacks with incoming...
Tesla's dual ventures, cars and CO2 credits, could face potential setbacks with incoming resolutions, as both industries are at risk.

The Clash Over EV Mandates: Trump Stops California's Electric Car Goals

Trump Imposes Halt on California's Auto Emission Standards for Electric Vehicles

Get ready for gas-guzzling cars to hit Cali streets again! U.S. President Trump has put a stop to the state's plan to ban the sales of traditional gasoline cars starting in 2035. The move has resulted in a major face-off between Trump and California Governor Gavin Newsom, and it ain't looking good for Tesla, once allies with Trump's pal, Elon Musk. California is now suing Trump and his Republican crew.

The Politicking of Electric Cars

Back in the ’70s, Cali got the green light to set stricter emission standards than the feds. Fast forward to 2035, they aimed to only sell battery-powered or hybrid cars. Trump's been against it, calling it a "nightmare" for the nation. Even the car industry cried foul, pointing out that if Cali does it, they'll feel the burn too, especially since the state is the U.S.'s biggest market for EVs[1]. California makes up a quarter of new electric and hybrid vehicle registrations[1].

Congressional Republicans have backed Trump on this issue, and he's given it the thumbs-up. California's goal of setting its own emission standards is now toast[2].

Slamming the Brakes on Tesla's Carbon Credits

Tesla's been making big bucks selling carbon credits lately. Since they're a completely electric vehicle company, they don't need 'em, but others do. Last quarter alone, they raked in $595 million from selling them[2]. Compare that to their $12.9 billion in car sales in the same timeframe! But now, Trump's move against Cali is bad news for this lucrative business.

A Rift in Friendship

Elon Musk dished out over $250 million to fund Trump's campaign last year. At one point, they were friends, but they've had a falling out lately over the tax and spending bill that Trump pushed. Musk spoke out against Trump online, then did a U-turn and apologized for his outbursts this week[3]. Trump called Musk a "friend" again, but also said he's gotten a bit nutty. He also claimed that Musk didn't attempt to dissuade him from axing the EV target[3].

A Tussle Between States

Trump and California's Governor Newsom have been at odds over immigration enforcement actions, particularly in L.A. Trump ordered the deployment of National Guard and Marine Corps personnel there against California and the city's wishes. California promptly filed a lawsuit against the Trump admin, calling it a "partisan agenda" that threatens lives, the economy, and the environment[2]. They've been to court together 26 times already[2].

Sources:

[1] ntv.de[2] ino/dpa[3] Reuters[4] Environment California[5] The Verge

The Commission, amidst politics and general-news, has also been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation. Meanwhile, in the sports section, Tesla's lucrative business of selling carbon credits takes a hit with Trump's decision on California's EV goals, potentially resulting in a rift within the industry.

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