Tesla Kneels Before Trump as Billions Are at Stake
This page is translated from the original post "Tesla à genoux devant Trump avec des milliards en jeu" in French.
- 28/09/2025 14:06
With a few weeks until a pivotal general meeting, Tesla fights to save its enormous revenues from carbon credits.
Tesla sounds the alarm. The electric vehicle manufacturer pleads with the Trump administration not to repeal the standards on CO2 emissions and the historic recognition that greenhouse gases threaten human health. The EPA proposes to eliminate these rules, which according to Tesla’s statements to Reuters “would exempt vehicle manufacturers from all measures and control of emissions.”
Beyond ecological good intentions, what is the risk for Tesla? Billions of dollars at stake! Last year, the manufacturer earned $2.8 billion from the sale of regulatory credits to its competitors, who seek to offset their emissions. The removal of these rules would jeopardize these vital revenues, right before a decisive general assembly meeting for its future and growth strategy.
Tesla Benefits from an Absurd System
The emission offset system appears to be quite absurd. Tesla earns billions simply by selling zero-emission vehicles and charging other manufacturers to offset their excesses.
For several months, the Trump administration has relaxed regulations for most manufacturers and even blocked California’s plan to ban the sale of gasoline vehicles by 2035. For Tesla, the fight is not only environmental: it’s a strategic and financial standoff, where the survival of tens of billions in carbon credits and the competitive advantage they provide are at stake.
You might be interestedin this article:
The political context certainly fuels the tension. Elon Musk, a former close advisor to Trump, has had a public feud with the president this year. Some observers see this regulatory offensive as a possible political revenge. In this battle, Tesla is trying to turn a complex bureaucratic system into a vital issue for the company’s future and the U.S. electric vehicle industry.
ALSO READ: Tesla hosts a lottery for its historic AGM!
We also suggestthese articles:
Also read
