Tesla just threw the auto industry a curveball. While major automakers are pushing the EPA to ease vehicle emissions standards, Tesla is asking the agency to keep the rules intact - creating an awkward contradiction with CEO Elon Musk's $300 million investment in electing Donald Trump, who this week called climate change a 'con job' at the UN.
Tesla just put itself on the opposite side of virtually every major automaker in America. The company formally asked the EPA not to roll back current vehicle emissions standards, breaking ranks with industry giants who are lobbying for looser rules. The timing couldn't be more awkward - this comes the same week President Trump told the UN General Assembly that climate change is a 'con job' and a 'scam,' according to Axios reporting on Tesla's EPA filing.
The contradiction is striking. Tesla CEO Elon Musk spent $300 million helping Trump get elected, yet now his company's regulatory team is directly opposing the administration's environmental agenda. Tesla also asked the EPA to preserve the 2009 Endangerment Finding - the legal foundation for modern climate regulations that Trump wants to demolish.
'The finding is based on a robust factual and scientific record,' Tesla wrote to the EPA, according to company documents. It's a far cry from Trump's UN speech dismissing climate science entirely.
But Tesla's environmental stance isn't purely altruistic. The company makes serious money from stricter emissions rules. When automakers like Ford and General Motors miss their fleet emissions targets, they pay Tesla hundreds of millions to buy regulatory credits. Reuters reported that these same companies are now asking the EPA to ease the rules that generate Tesla's credit windfall.
The EPA has been collecting public comments since August on proposed rollbacks that Administrator Lee Zeldin promised would drive 'a dagger into the heart of the climate change religion.' Tesla's submission stands out as the lone major automaker defending the current system.
Industry dynamics help explain Tesla's position. Traditional automakers are struggling to meet aggressive EV transition targets while Tesla already hit them. The company sold over 1.8 million vehicles last year, nearly all electric. Looser standards would eliminate Tesla's competitive advantage and cut off a lucrative revenue stream worth roughly $1.8 billion in 2024 credit sales.
