As the Environmental Protection Agency (EPA) weighs whether to revise or rescind its authority to regulate vehicle greenhouse gas (GHG) emissions, automakers are divided. Last week, the Alliance for Automotive Innovation (Auto Innovators), representing most major automakers, urged the agency to revisit its standards for model years 2027–2032, citing market challenges and slowing electric vehicle (EV) adoption.
Tesla, however, filed its own 27-page letter taking the opposite stance. The company strongly urged EPA to maintain both the 2009 Endangerment Finding and the current GHG vehicle standards, arguing that they are essential for industry stability, global competitiveness, and consumer benefits.
In its comments, Tesla called the Endangerment Finding a “lawful, scientifically robust, and long-established” basis for regulating vehicle emissions, noting that courts have repeatedly affirmed EPA’s authority under the Clean Air Act. The company warned that rescinding the finding or repealing standards would:
- Undermine billions of dollars in EV investments made by U.S. manufacturers.
- Create regulatory uncertainty likely to trigger lengthy legal challenges.
- Penalize companies that have already complied with and exceeded performance-based standards.
Tesla also pointed to its own record: in 2024, Tesla customers avoided nearly 32 million metric tons of CO₂ emissions, equivalent to driving 78 billion miles in gas-powered vehicles.
While Auto Innovators argue current standards are unrealistic given weaker EV sales and the rollback of federal incentives, Tesla countered that EV costs are falling and consumer demand remains steady. The company cited projections of nearly 50% battery cost declines by 2026 and studies showing EV total ownership costs are already lower than comparable internal combustion models.
Tesla said repealing standards now would ignore these trends and risk ceding leadership to foreign manufacturers, particularly in China, where EV adoption is accelerating.
The split underscores a growing divide in the U.S. auto sector. Traditional automakers are seeking regulatory relief amid slower-than-expected EV adoption, while Tesla insists that strong standards drive innovation, cost reduction, and long-term competitiveness.
EPA has not yet indicated how it will proceed, but its decision could reshape the trajectory of federal climate policy for the transportation sector — the nation’s largest source of GHG emissions.
