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jaberwock's avatar

One question worth asking is why are both the NHTSA and the EPA setting vehicle fuel economy standards? Whose responsibility should it be? and why are there two sets of identical standards, one with fines attached for non compliance and one which appears to be a mandate.

I expect Trump to attack that, probably by removing CO2 emissions from the EPAs responsibility.

Those standards are a large source of income for Tesla, but I think Musk is more afraid of the competition that mandates will bring.

For a preview of the effect of mandates, look over the pond at the UK. Manufacturer's who don't meet EV mandates will have to pay a £15,000 fine for each car over the target. The result is that EVs are being heavily discounted, some by more than 30%, in an attempt to meet the mandates by year end. That kind of competition will kill Tesla, who don't have an ICE business to prop up the money losing EV business.

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John's avatar

I think you might be wrong about Musk wanting to preserve the EPA waiver, as that funding is already in the process of drying up for Tesla now that the legacy automakers are launching their own EVs and earning those credits for themselves instead of having to buy them all from Tesla.

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