News
U.S. Supreme Court to hear challenge on California emission rule waiver
The U.S. Supreme Court is set to hear a challenge from fuel companies against California’s ability to create its own emissions rules, in a case that could set a major precedent for how states handle making their own standards in efforts to lower greenhouse gas emissions through electric vehicle (EV) adoption.
After the Environmental Protection Agency (EPA) granted California an exemption from federal air pollution laws in 2022, effectively letting the state set its own vehicle emissions rules, the U.S. Supreme Court last week agreed to listen to a bid from a Valero Energy subsidiary and other fuel groups to challenge the exemption (via Reuters).
Valero’s Diamond Alternative Energy and other associated fuel business lobby groups argue that the waiver oversteps the power of the EPA under the Clean Air Act, under which the federal rules are set. The groups also argued that such a decision would lower demand for their liquid fuels, ultimately inflicting harm on their bottom line.
RELATED: U.S. Congressman urges President Biden to end EV transition goals
In the appeal, the groups also said that California was overstepping its power, acting as a “junior-varsity EPA” by making regulatory decisions to combat climate change and force the adoption of EVs upon consumers—choices the group says the state does not have the right to make.
The decision also comes after the EPA was backed by the U.S. Court of Appeals for the District of Columbia in April, with the court throwing out a legal challenge against the waiver from a group of 17 Republican-run states. In that appeal, backers also argued that California’s ability to set its own emissions rules gave the state unconstitutional regulatory power, which they said isn’t available to other states.
The waiver has long been a point of contention, originally dating back to a 2013 decision to offer California the waiver. In 2019, the Trump administration rescinded that waiver, before the EPA was given power to reinstate it under the Biden administration in 2022.
California has also been a leader in pushing EV adoption through massive incentives, and an official ruling later in 2022 to ban the sale of new gas cars beginning in 2035. That ruling has since been followed by a handful of other states, including New Jersey, New York, Oregon, and Washington.
Last year, California’s battery-electric vehicle (BEV) sales also made up around one-third of all U.S. BEV sales, as led by Tesla.
Passed by the California Air Resources Board (CARB), the California ban also includes a gradual phase-out of gas vehicles set to begin in 2026, for which the state also required an EPA waiver. California has gained over 75 separate waivers since 1967, through which it has been able to lodge increasingly strict rules surrounding vehicle emissions performance and EV sales.
In February, the EPA actually loosened federal standards requiring automakers to sell a certain ratio of EVs by 2032. Previously, the agency required that automakers make 60 percent of sales come from BEVs and plugin hybrids by 2030, increasing that to 68 percent by 2032. Now, the agency mandates that manufacturers make 50 percent of their overall sales either plugin hybrids or BEVs by 2030.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
California’s proposed 2035 EV sales mandate faces scrutiny at EPA hearing
Elon Musk
Tesla looks to expand Robotaxi geofence once again with testing in new area
It looks as if Tesla is preparing for its next expansion of the geofence, potentially moving toward a much larger service area that could eclipse 150 square miles.
Tesla looks to be preparing for the potential expansion of the Robotaxi geofence once again, as the company was spotted testing the suite in an area well outside of the Austin service area.
After it first launched the Robotaxi platform on June 22, Tesla has managed to expand its geofence twice, essentially doubling the travel area both times.
The most recent expansion took the size of the geofence from 42 square miles to about 80 square miles, bringing new neighborhoods and regions of the city into the realm of where the driverless vehicles could take passengers.
However, it looks as if Tesla is preparing for its next expansion of the geofence, potentially moving toward a much larger service area that could eclipse 150 square miles.
Over the weekend, one fan noticed a Robotaxi validation vehicle testing in Bee Cave, Texas, which is roughly 25 minutes from the edge of the current geofence:
Tesla spotted doing Robotaxi validation testing in Bee Cave, Texas, about 15 miles west of Austin (20-25 minute drive from current edge of geofence). pic.twitter.com/JCOcoys8SJ
— Sawyer Merritt (@SawyerMerritt) August 23, 2025
Tesla has been testing vehicles in the western suburbs of Austin for some time, and it seems the company is laying some groundwork to push its geofence expansion into Plaid Mode as competition with Waymo continues to be at the forefront of the conversation.
Waymo has been expanding with Tesla for some time, as the pace of expansion for the two companies has been relatively accelerated for the past couple of months.
Tesla’s expansions of the geofence sent a clear message to competitors and doubters, but it is still aiming to keep things safe and not push the envelope too quickly.
The geofence expansion is impressive, but Tesla is also focusing on expanding its vehicle fleet in both Austin and the Bay Area, where it launched a ride-hailing service in July.
Tesla Bay Area autonomous fleet to grow to over 100 units: Elon Musk
Still, safety is the priority at the current time.
“We are being very cautious. We do not want to take any chances, so we are going to go cautiously. But the service areas and the number of vehicles in operation will increase at a hyper-exponential rate,” CEO Elon Musk said during the Q2 Earnings Call.
News
Tesla considers making a big move with Model Y pricing as demand is skyrocketing
“Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see.”
Tesla is considering making a big move with Model Y pricing as demand is skyrocketing due to the EV tax credit expiring in just over a month.
With the $7,500 EV tax credit set to be removed on September 30, Tesla is experiencing increased demand for its Model 3 and Model Y. Customers are doing whatever they can to take delivery of the car they ordered as soon as possible.
The IRS recently adjusted the EV tax credit’s rules slightly.
Previously, the vehicle had to be delivered by September 30, but a slight tweak the agency made last week will now allow customers to enter a legally binding contract along with a marginal down payment by that date. The delivery can occur after September 30, and the car can still qualify for the credit.
However, demand is getting so crazy for the Model Y that Tesla is considering a price increase on the all-electric crossover, as well as a potential boost in production output to keep up with orders.
Inventory is dwindling in several markets across the United States, a good sign for the company, as it could have one of its best quarters in recent history in terms of deliveries.
However, Tesla is thinking of bumping the price slightly, Raj Jegannathan, the company’s VP of IT, AI Infrastructure, Apps, Infosec, and Vehicle Service Operations, said on X:
Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see.
— Raj Jegannathan (@r_jegaa) August 25, 2025
The price adjustment would come as a response to increasing production output, Jegannathan’s response seems to indicate.
The bump would help Tesla’s margins, but the idea that the company could adjust pricing by increasing it would not be popular with potential car buyers. It might encourage some buyers to put their orders in sooner, hoping to avoid a new, higher price.
However, it could also steer some buyers away from putting an order in on a vehicle, especially if the price increase is more than a few hundred dollars.
Tesla boosted the price of the Model S, Model X, and Cybertruck recently, but brought in a “Luxe Package” to help justify it.
It comes with Free Full Self-Driving, Free lifetime Supercharging, four years of premium service, and lifetime Premium Connectivity.
Tesla has produced its 100,000th new Model Y at Gigafactory Berlin. The milestone was announced by the electric vehicle maker through its official Tesla Manufacturing account on social media platform X.
New Tesla Model Y milestone
The milestone was announced by Tesla on X, when the company wrote “Today, we built the 100,000th New Model Y at Giga Berlin!” The announcement was accompanied by an image of a new Model Y coming off the line.
The milestone was received warmly by members of the Tesla community, many of whom expressed excitement at the further progress of the new Model Y program at Giga Berlin. The facility, after all, only produces Model Y units, which would make it the perfect site to produce new variants like the Model Y Performance and possibly even the Model Y L, which was recently launched in China.
New Model Y ramp
As noted in a previous report from electrive, the initial production of the new Model Y started in Giga Berlin around mid-January 2025. Since the new Model Y involved a changeover from the legacy Y to the new variant, the ramp of the new Model Y’s production at the Germany-based facility was likely a gradual process over the past months.
It would then be no surprise if the next 100,000 new Model Y units would be produced in Giga Berlin in a shorter period. Giga Berlin could become an even bigger factor in Tesla’s global sales, after all, especially if it becomes the site that produces the Model Y Performance and the Model Y L for Europe and other territories. Giga Berlin, if any, seems to be quite busy recently, with aerial videos of the facility showing a fleet of mysteriously covered Model Y units being stored within the complex.
Tesla looks to expand Robotaxi geofence once again with testing in new area
Tesla considers making a big move with Model Y pricing as demand is skyrocketing
Tesla produces 100,000th new Model Y in Giga Berlin
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