Tesla is lobbying the British government to adopt regulations that would have negative consequences for its fossil fuel reliant automotive competitors. Elon Musk’s electric vehicle (EV) brand wants the U.K. to tighten carbon emissions rules and increase taxes on gas-powered vehicles, according to recently reported documents.
The U.K. already has a mandate in place compelling car manufacturers to sell more electric vehicles every year. However, following complaints from automakers like Ford, Land Rover and Stellantis, the government indicated plans to loosen these regulations.
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Now, Tesla is advocating for more stringent rules to be enforced, including higher taxes on gas-powered cars, the revenue from which the EV maker has suggested should be used to subsidize EV sales. The company told British lawmakers that “the U.K. is now falling behind” other European nations in terms of transportation emissions legislation, and that “urgently action is needed” to reduce air pollution from this sector.
Aside from the money it would receive from any potential EV subsidies, Tesla could stand to benefit even more from stricter emissions standards. The company generates significant revenue from selling carbon credits to automakers that fail to meet greenhouse gas reduction requirements, and a tougher mandate on vehicle emissions in the U.K. could create a lucrative market for these types of transactions.
During the first nine months of 2024, Tesla earned over $2 billion from selling these credits, adding to the more than $9 billion it has made from the practice since 2009.
TESLA IS GOING AFTER ITS COMPETITORS IN THE UK.
DOCUMENTS REPORTEDLY SHOW THE EV MAKER LOBBIED THE BRITISH GOVERNMENT TO INCREASE TAXES ON GAS POWERED CARS-
AS WELL AS STRENGTHEN RULES ON CARBON EMISSIONS.
THE UK ALREADY HAS A MANDATE IN PLACE WHICH COMPELS AUTO MANUFACTURERS TO SELL MORE ELECTRIC VEHICLES EVERY YEAR.
HOWEVER, AFTER COMPLAINTS FROM CAR BRANDS LIKE FORD, LAND ROVER AND STELLANTIS-
THE GOVERNMENT INDICATED LAST MONTH IT WOULD BE LOOSENING THOSE REGULATIONS.
TESLA ARGUES STRICTER STANDARDS ARE NEEDED TO COMBAT AIR POLLUTION-
TELLING BRITISH LAWMAKERS THE UK RISKS FALLING BEHIND OTHER EUROPEAN NATIONS IN THIS REGARD IF A STRONGER MANDATE ISN’T ADOPTED.
THE COMPANY IS ADVOCATING FOR HIGHER TAXES TO BE IMPOSED ON GAS-POWERED CARS-
REVENUE FROM WHICH IT SAYS SHOULD GO TOWARDS SUBSIDIZING THE SALE OF EVS.
BUT TESLA HAVING ITS FOSSIL-FUEL RELIANT COMPETITION FACE INCREASED EMISSIONS FEES AND THEN USING THAT MONEY TO HELP BOOST REVENUE ISN’T THE ONLY POTENTIAL BENEFIT HERE FOR THE EV INDUSTRY LEADER.
TESLA ALSO MAKES BILLIONS EVERY YEAR SELLING RIVAL CAR MANUFACTURERS THE CARBON CREDITS IT ACCUMULATES FROM ITS EV BUSINESS.
SO, TOUGHER REGULATIONS ON AUTOMOTIVE GREENHOUSE GAS OUTPUT IN THE UK COULD CREATE A LUCRATIVE MARKET FOR THESE TYPES OF TRANSACTIONS.
DURING THE FIRST NINE MONTHS OF THIS YEAR, TESLA EARNED OVER 2 BILLION DOLLARS FROM SELLING CARBON CREDITS TO AUTOMAKERS THAT HAVEN’T PRODUCED ENOUGH EVS TO MEET EMISSION STANDARDS.
IN TOTAL, THE COMPANY MADE MORE THAN 9 BILLION DOLLARS FROM THIS PRACTICE SINCE 2009.
TO GET MORE STORIES ABOUT DEVELOPMENTS IN THE ELECTRIC VEHICLE INDUSTRY FROM AROUND THE WORLD, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME- JACK AYLMER.
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