Tesla is asking the U.S. Environmental Protection Agency (EPA) to preserve existing greenhouse gas regulations and the legal foundation underpinning them, warning that dismantling the rules would undermine progress on climate change and destabilize investments in clean transportation.
At the center of the debate is the EPA’s proposal to repeal the 2009 “Endangerment Finding,” which determined that carbon emissions from vehicles and other sources pose a danger to public health and welfare. This landmark ruling has served as the legal basis for regulating tailpipe emissions for more than a decade.
In formal comments now available in the EPA docket, Tesla argued that the finding remains sound: “The Endangerment Finding — and the vehicle emissions standards which flow from it — have provided a stable regulatory platform for Tesla’s extensive investments in product development and production.” The company emphasized that the ruling was “based on a robust factual and scientific record” and continues to justify federal action. (via Axios)
Tesla also rejected the EPA’s related proposal to eliminate greenhouse gas limits for cars and trucks, which the agency’s administrator, Lee Zeldin, controversially described as “driving a dagger into the heart of the climate change religion.”
Tesla’s position stands in sharp contrast with most major automakers, including General Motors, Toyota, and Volkswagen. Earlier this week, those companies—through their industry group—called on the EPA to ease vehicle emissions rules that require manufacturers to steadily increase electric vehicle production.
By comparison, Tesla’s business model is closely aligned with strict climate regulations. In 2024, the automaker earned $2.8 billion globally from regulatory credits, which it sells to other manufacturers that fail to meet emissions standards. Weakening these rules would not only reduce Tesla’s financial advantage but also, the company argues, discourage innovation across the industry.
“The proposed action undermines the stability of this program, diminishes the value of performance-based incentives that electric vehicle manufacturers accrue under the standards, and creates an uneven playing field — reducing the inducement for investment in vehicle innovation,” Tesla said in its comments.
Tesla acknowledged that existing emissions rules are complex and could be simplified. However, the company stressed that the EPA has both the authority and the responsibility to regulate greenhouse gas emissions from vehicles.
“While Tesla believes that the current regulation establishing the standards is overly complex and could be streamlined to make it less burdensome, we do, nonetheless, recognize EPA’s authority and obligation to establish greenhouse gas standards for motor vehicles,” the company concluded.
The EPA will review comments before issuing its final decision.
