mobile-menu-icon
GM Authority

Tesla Pushing For Stricter U.S. Fuel Economy Rules

Tesla has urged the Biden administration to adopt significantly stricter fuel economy standards, well beyond the more-stringent standards already proposed by the National Highway Traffic Safety Administration (NHTSA) over the summer. Tesla is the largest all-electric vehicle company in the world, delivering 1.31 million units during the 2022 calendar year. Meanwhile, legacy automakers, including GM, have criticized the NHTSA’s proposed standards.

Per a report from Reuters, Tesla urged the Biden administration on Tuesday to finalize new rules that would increase the Corporate Average Fuel Economy (CAFE) standards by 6 percent annually for passenger cars and 8 percent annually for trucks and SUVs, through the 2032 calendar year. Tesla argued that the stricter standards would “conserve energy and address climate change.”

This past July, the NHTSA proposed a 2-percent annual increase to fuel economy for passenger vehicles and a 4-percent annual increase to fuel economy for trucks, starting by the 2027 calendar year. The NHTSA’s proposal would bring the fleet-wide average fuel economy to 58 mpg by 2032. The NHTSA argues that the new proposal would “strengthen energy security” and “save Americans hundreds of dollars at the gas pump,” with total estimated savings amounting to $18 billion. The new NHTSA fuel economy standards build on previous changes proposed by the U.S. Department of Transportation, which follow an executive order signed by the Biden administration in April of 2022.

Meanwhile, legacy automakers, including GM, have argued that the new NHTSA proposal is unrealistic, stating that the rules would “increase costs to the American consumer with absolutely no environmental or fuel savings benefits,” per the Alliance for Automotive Innovation, a Washington, D.C.-based trade association and lobby group with representatives from nearly every major automaker.

The American Automotive Policy council, which represents the Big Three Detroit automakers (GM, Ford, and Stellantis), has also urged the NHTSA to lower its proposed fuel economy standards for trucks to 2 percent per year, arguing that the current proposal “disproportionately [impacts] the truck fleet.” It’s estimated that GM could pay upwards of $6.5 billion penalties by 2033 if the proposal is made law.

Subscribe to GM Authority for more GM competition news, GM electric vehicle news, GM-related political news, and around-the-clock GM news coverage.

Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

Subscribe to GM Authority

For around-the-clock GM news coverage

We'll send you one email per day with the latest GM news. It's totally free.

Comments

  1. Color me shocked. The guy who spews massive CO2 from H2 creation from his nat gas wells in TX for his rockets is screaming about the mere peons using fossils to drive. The nerve of those peons. Let them eat cake.

    Reply
    1. I’m not shocked butbhaa nothing to do with, or irony of, SpaceX, which is more economical from many standpoints than the shuttle program(s).

      Purely for continued success of Tesla. And at a time EV truck production is being slashed and delayed… Because you know, as anyone who has ever driven a truck and has half a brain knows EV trucks are currently pointless novelties with ever increasing price tags and false promises.

      Reply
    2. How about Elon’s four private jets – another case of “do as I say, not as I do”.

      Reply
  2. Not shocked that Tesla is basically gaming the system, but the real question is: Why is the National Highway Traffic Safety Administration setting fuel economy targets????

    Reply
    1. Right? Why is there an EPA if not for that?

      Reply
  3. Screw Elon.

    Reply
  4. The corporate average model is deeply flawed. They should base the requirements off vehicle type specifics not combined vehicles per company.
    Of course Tesla does better for tailpipe emissions, there aren’t any and they ignore total environmental impact for rules. Of course Honda has a lower corporate emissions average than GM or Ford, they don’t make trucks or anything designed for heavy hard work.
    Target each vehicle group separately. Make pickups meet a specific target, Large suv’s make a specific target, etc. That would do more good than making Ford produce EV’s nobody wants to offset the trucks many people need.
    (it would also be nice to convince people that don’t need trucks to not buy them as a status symbol, but that ain’t easy)
    Ford and GM and stellantis could also get around the rules by raising the GVW of all 1/2 tons to 8600lbs which would exclude them from the cafe calculations…just saying.

    Reply
    1. This guy is really getting on my nerves, go out in the sun and get some sun. Get in better shape, you challenge putin,that guy would smoke you. How about you and i go a few rounds??? If the revolution comes you and your 11 kids will be homeless I can assure you!!

      Reply
  5. Musk is a self serving POS whobcould care less about the environment. Nice to see Tesla’s stock is getting hammered today.

    Reply
  6. Yeah, saving hundreds at the pump, only to cost the consumer thousands in the long run. Climate change is inevitable. Elon wants even more impractical rules to benefit Tesla which is not going to happen, especially in that time frame. Looks like desperate times for desperate measures.

    Reply
    1. This guy is really getting on my nerves, go out in the sun and get some sun. Get in better shape, you challenge putin,that guy would smoke you. How about you and i go a few rounds??? If the revolution comes you and your 11 kids will be homeless I can assure you!!

      Reply
      1. Marko Polo
        I think the term is “Go outside and get some sun”

        Reply
  7. what a surprise. another company lobbying for itself at the expense of consumers. did you know, america is one of the very few countries that prohibit import of vehicles newer than 25 years old in the name of “emissions”? courtesy of mercedes…. elon is just following those before him, as long as it benefits him ofc

    no worries, marry msrp barra will respond with another production delay and msrp hike on existing models.

    Reply
    1. The unites states government is killing the big 3 automotive makers ! everything from the pandemic – parts supply chains and the UAW ! how about letting the big 3 get back on its feet then implement everything from safety standards to fuel economy standards ! The other 13 auto makers could suck it !

      Reply
  8. Shocking that Elon wants the government to regulate the usage of fuel consumption. This guy has made so much money on government aka taxpayer subsidies. Now he wants even more help from the politicians with making his company stronger.

    Reply
  9. Tesla can go to h*##!

    Reply
  10. I have an idea, Why don’t we lobby the government to increase electricity costs for EV’s by the same amount because about 80% of the electricity generated in North America is either coal or natural gas fired. I imagine you could drive 1000’s of newer ICE vehicles that would pollute less than one of those plants that supply the juice these EV’s run on.

    Reply
    1. No no, they will raise electricity costs by stupid amounts AFTER forcing everyone to buy EVs first.

      Reply
  11. So you can’t wait to pay Saudis and Russians to fuel your 10MPG gas guzzlers and put those oil refineries right in your back yard. Oh and those small earth quakes from fracking, ignore those as they are not by your home. Lets not forget they knew EV’s were coming for over a decade and took all that time to DO NOTHING. Now with pressure being applied GM and all the others are crying that they can’t make huge SUV’s for profit. Go figure.

    Reply
  12. Just so I understand the logic….Elon wants to get the Government to raise the Fuel average for fleets because he wants to help Tesla?
    Can someone please explain this logic to me?
    Wouldn’t he just want to keep Legacy Automakers making ICE vehicles while digging their own Grave in doing so and paying Tesla money to buy credits from them?

    Why would Elon and or Tesla care that Legacy make more EV’s?
    Could it be that Elon and Tesla are actually low key trying to push the Legacy Automakers into BEV’s so they don’t die a slow death by lets say 2030-2035?

    Why wouldn’t Tesla want the ENTIRE BEV market to themselves?
    Like why have open patents and such?

    I am really confused by the logic.

    I could be completely missing something and I like to learn new things. I am curious why Elon and or Tesla would care so much.

    Reply
    1. >>Could it be that Elon and Tesla are actually low key trying to push the Legacy Automakers into BEV’s so they don’t die a slow death by lets say 2030-2035?<<
      LOL your hilarious. Teslas keep getting cheaper and better every year. The cars are quicker require less maintenance and you think people have not noticed. They have grown continually while GM and Ford have to shrink the number cars they make and provide jumbo cars to make a profit. Now gas is high those jumbo cars don't look as good. This year they will make and deliver the 1.8 million cars. Next year it will be over 2million
      Year after that closer to 2.5. In short they will be getting larger while Gm and Ford.. Lets just say they will be getting smaller and smaller. Neither company has been able to make a profitable EV yet. Sad, very sad.

      Reply
  13. Suggest we place a limit on the amount of Electricity to Charge the Cars. Exactly who is it that will stop charging their cars in Brown Out Conditions?
    Question; is there a net positive effect to Battery cars? The environmentalists think there is no Fossle Fuels being spent to charge the cars.
    Only 3% of all global energy produced is renewable, after 20 years and Billions in subsidiaries.
    We are a loooooong way from being able to support a major battery cars production.

    Reply
    1. Why do you care how much electricity people use? Should you not be able to work your AIR? Maybe you should not be able to turn on your cell phone. Uses too much juice.
      >>Only 3% of all global energy produced is renewable, after 20 years and Billions in subsidiaries.<<
      Add solar to you house. Be part of the solution.

      Reply
  14. Adding solar to a private residence is an ignorant suggestion. I have a big roof on my house and the solar companies tell me the most I can put up there is 7500 watts. At $25k for the installation and 15-20 years for a payback, it’s hardly a drop in the bucket. Add that to a failed inverter every 3-5 years and you’ve dug a big hole. Oh, and did I mention that most of the suppliers claim a15-20 year lifespan for the panels? 15-20 years life and payback?? There’s no savings there for me. EV’s are not for everybody. I sometimes drive 500-600 miles a day for work and my time is worth more than driving 200, maybe 300 miles and then sitting at a charger for a couple hours because there is a line or the charger is broken. If you want an EV, get one. But please stop trying to force me into something I don’t want. My 2 ICE vehicles each get over 30 mpg and my company car gets almost 35. The climate has been changing for thousands of years. To think that there is a crisis is based on facts carefully chosen and paid for by the far left. JMHO

    Reply
  15. No kidding, right after he admitted to his investors that the Cybertruck will have “enormous” challenges in reaching volume production and making the Cybertruck cash flow positive.

    I am going to assume this isn’t a coincidence.

    The source is motortrend.com

    Reply
  16. F elon lets come up with a electric economy so his cars have the power of say a 74 vega.

    Reply

Leave a comment

Cancel