Trump Dows California's Electric Car Mandate: A Blow for Tesla
Trump impedes California's electric vehicle regulations
In an intensifying power struggle with California Governor Gavin Newsom, President Donald Trump has axed California's vision for a greener future. This move punches California in the gut and may well prove costly for Tesla, the one-time ally of Trump's, Elon Musk. Not one to shy away from conflict, California immediately shot back, slapping Trump and his Republicans with a lawsuit.
Historically, California has enjoyed the power to set stricter emissions standards since the 70s, and in 2035, they aimed to go full electric or hybrid. Trump, however, has never been fond of this environmental initiative, deeming it a "disaster" when he signed the resolution to halt it. The auto industry, too, expressed disapproval, arguing the plan would disturb markets beyond California's boundaries. California, the leading US market for electric vehicles, accounts for a quarter of new electric and hybrid registrations, according to official figures.
Power Clash: Trump vs. Musk - Who Wins?
The Republican-controlled Congress passed resolutions on this issue, and Trump has now signed them. These also strip California of its power to set emission limits. Trump's actions could potentially hamper Tesla's carbon credits trade. In the last quarter alone, Tesla made $595 million from selling these credits, while its car sales generated $12.9 billion.
Musk, a significant contributor to Trump's campaign, recently had a spat with Trump over the spending bill. Despite the disagreement, Trump called Musk a "friend" again, insisting Musk didn't try to stop him from scrapping the electric car goal. And yet, tensions remain high between the two, with Trump labeling Musk "a bit strange."
California's legal assault on Trump over the electric vehicle resolution extends beyond their differences on immigration. California has taken issue with Trump's deployment of the National Guard and Marine Corps in Los Angeles against the state and city's wishes. In response to Trump's move, California's Attorney General, Rob Bonta, remarked, "The divisive, partisan agenda of the President threatens our lives, our economy, and our environment. It's reckless, it's illegal, and we'll see the Trump administration in court for the 26th time."
References:
[1] ntv.de[2] ino/dpa[3] congress.gov[4] californiaagblog.org[5] scotusblog.com
Fossil Fuel Phase-Out, Tesla Motors, USA, California, Donald Trump, Internal Combustion Engine Phase-Out
- Amidst the power struggle between Trump and California, the European Commission 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, especially relevant in the context of the advancements in science, environmental-science, and technology in the nuclear industry.
- In political news, the dispute between Trump and California over the electric car mandate has brought forth a question on the future of finance, with Tesla, a significant player in the renewable energy market, potentially facing challenges in its carbon credits trade due to regulation changes.
- The ongoing conflict between Trump and California, along with the broader impact on the auto industry, brings attention to the larger environmental implications, with the phase-out of fossil fuels and the internal combustion engine notably dependent on the decisions made in politics and science.
