Tesla wants the US government to increase penalties on automakers failing to meet fuel economy requirements

Tesla is pushing the US Administration and the US Appeals Court to hike civil penalties for automakers that fail to meet fuel economy requirements.

President Trump’s Administration set the effective date of higher penalties to the 2022 model year before leaving office. Tesla is pushing the Biden Administration to restore the higher fines levied by the Obama Administration starting in the 2019 model year, reports CNBC.

On August 18, the National Highway Traffic Safety Administration (NHTSA) noted they would reverse course and impose higher penalties. However, the NHTSA stated they would take public comments first.

Tesla asked the Second Circuit US Court of Appeals to reinstate the higher penalties on August 27. The court rejected Tesla’s earlier request in April for immediate action.

A group representing General Motors, Toyota, Ford and Volkswagen asked the court to reject Tesla’s request. They argue that the costs will hurt traditional automakers while benefiting only a few automakers who can sell credits.

One of those is of course Tesla. The EV automaker makes a significant amount of money each quarter by selling credits to other automakers to help them meet government vehicle emission requirements. The Court nor the Biden Administration has commented or ruled on the issue.

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