Tesla just threw the auto industry under the bus. The electric vehicle giant asked the EPA not to roll back emissions standards, breaking ranks with major automakers who want the rules weakened. The move creates an awkward contradiction: CEO Elon Musk spent $300 million helping elect Trump, who just called climate change a "con job" at the UN.
Tesla just made the most expensive political miscalculation in corporate history. The company formally asked the Environmental Protection Agency not to roll back current vehicle emissions standards, directly contradicting the agenda of President Trump, whom CEO Elon Musk spent $300 million to help elect.
The timing couldn't be more brutal. Tesla's letter to the EPA landed the same week Trump told the United Nations General Assembly that climate change is a "con job" and a "scam." While Musk was busy platforming Trump rallies and funding his campaign, Tesla's regulatory policy team was quietly preparing to oppose the very policies their CEO helped enable.
Tesla's position breaks sharply with the broader auto industry. General Motors, Ford, and other major automakers have been pressing the EPA to ease tailpipe emissions rules, arguing the standards are too aggressive. Tesla stands alone in defending them.
The company also asked the EPA not to eliminate the 2009 Endangerment Finding, a legal foundation that underpins most modern environmental regulations. Tesla called the finding "based on a robust factual and scientific record," according to documents obtained by Axios.
But Tesla's environmental stance isn't purely altruistic. The company has generated hundreds of millions in revenue by selling emissions credits to automakers who can't meet fleet emissions targets. When Stellantis or Toyota fall short of their environmental goals, they write massive checks to Tesla for credits that help them comply with regulations.
EPA Administrator Lee Zeldin has been seeking public comment since August on proposed rollbacks, promising they would drive "a dagger into the heart of the climate change religion." Tesla's submission essentially begs the agency not to kill the golden goose that's been padding its quarterly earnings.
The credits business has been particularly lucrative during Tesla's growth phase. In some quarters, regulatory credit sales have made the difference between profit and loss for the company. California's Zero Emission Vehicle program, which generates many of these credits, has for elimination.
