The Biden Administration is pulling back on a proposed rule that would require automakers to build fewer combustion engine vehicles or face hefty fines.
On Tuesday, the Department of Energy decided to slow down the phase-out of existing rules that give car companies extra fuel-economy credits for the EVs they sell. The goal was to help U.S. car companies meet federal fuel efficiency standards while maintaining the ability to sell gas-powered pickups and SUVs that are big money makers.
The Biden White House decided to pull back the rules after meeting with automakers who said they could not meet the aggressive goals for a widespread EV transition.
The previous rules aimed to have 67 percent, or roughly two-thirds, of all new cars be electric by 2032. The new rules now allow for 30 to 56 percent of all new car sales to be EVs.
BREAKING
You might not own an electric vehicle by 2032, after all.
The EPA is *easing* its emissions rule ramp-up after major concerns from the car industry.
Percentage of EVs by 2032:
Previous plan: 67%
Current plan: 30-56%Dealers and consumers – how do you feel about…
— Car Dealership Guy (@GuyDealership) March 20, 2024
Last year, the U.S. EV market share was under 8 percent.
Tesla wants the U.S. to enact stricter fuel efficiency standards
The backpedaling comes as President Biden is attempting to bolster his re-election campaign. Reuters, in its report, points out that the move could be an attempt to sway some votes in his direction as the battleground state of Michigan, where General Motors and Ford, two legacy automakers, are based.
The Biden Administration’s concession comes as Donald Trump has stated that the heavy EV policies could cost millions of jobs and help Chinese EV makers dominate the growing U.S. EV sector.
The now-pulled-back proposal would have lowered “petroleum-equivalent fuel economy” ratings for EVs by 72 percent in 2027. By 2030, they would have been reduced by a total of 65 percent, giving companies more time to adjust to the strict standards.
Companies supported the announcement after they disclosed to the White House that meeting these standards would become increasingly difficult.
The Reuters report also states that GM would have faced $6.5 billion in fines, Stellantis would have been stuck with a $3 billion penalty, and Ford would have had $1 billion in fines.
The EPA also announced on Wednesday that it would implement revised standards for vehicle emissions from 2027 to 2032.
These new rules will require emissions reductions in every new car sold starting in 2027. To meet the new standards, automakers will be able to utilize cleaner technologies for gas-powered cars and add more zero-emissions EVs to their lineups.
The final rule would help the industry meet the limits of 56 percent of new vehicle sales being all-electric by 2032. It would also see at least 13 percent of new car sales be hybrid vehicles.
“Let me be clear: Our final rule delivers the same, if not more, pollution reduction than we set out in our proposal,” the EPA’s Michael Regan said, according to NBC.
“Today’s announcement will shift the trajectory of the automobile market and put us on a path to real emissions reductions, with an estimated 7.2 billion tons of global warming pollution avoided by 2055,” Steven Higashide, Director of the Clean Transportation Program at the Union of Concerned Scientists, said. “These rules are the strongest standards ever finalized and vital for meeting U.S. climate goals. This rule is technology-neutral and won’t mandate electric vehicles, but it will encourage this growing market. New cars sold in the coming years will be on the road for a decade or more, so it’s vital that these rules cut emissions from gasoline cars as well as encourage zero-emission electric cars.”
The new regulations are more aligned with the automotive industry’s beliefs. Dealers and the UAW saw previous plans from the EPA as unrealistic.
However, climate groups believe these standards will help eliminate emissions.
“These standards will help clean up emissions from transportation—the biggest source of global warming pollution in the U.S. To achieve their full potential, these rules must be accompanied by other investments in a cleaner, more accessible transportation system,” Higashide added.
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Investor's Corner
SpaceX is launching a secret spacecraft that could change how things are made in space
SpaceX’s secret disk-shaped Starfall capsule is targeting a market no reentry vehicle has cracked.
SpaceX is targeting Tuesday, June 23 for the first flight of Starfall, a reentry capsule the company has developed almost entirely in private. The Falcon 9 launch window opens at 6:43 a.m. ET from Space Launch Complex 40 at Cape Canaveral Space Force Station, with a backup window available the same time on June 24. SpaceX has made no public announcement about the vehicle, only providing launch details. Everything known about it has come through FAA and FCC regulatory filings.
What makes Starfall different starts with its shape. Rather than the traditional cone used by Dragon and every other cargo return capsule in operation, Starfall is a flat disk that measures roughly 10.2 feet (3.1 meters) wide and just 2.5 feet (0.75 meters) tall, and weighing 4,630 pounds (2,100 kg) and capable of returning up to 2,200 pounds (1,000 kilograms) of payload from orbit. The disk geometry maximizes structural efficiency and payload volume relative to mass, and the heat shield mechanically jettisons just before splashdown, allowing recovery teams to retrieve both the capsule and the shield separately from the Pacific Ocean.
The difference with Starfall from existing competitors, such as Varda Space Industries, which has largely built the orbital manufacturing market and returns heavy payloads per flight is that Starfall’s specification is roughly 30 times more per mission, and is designed to be mass-produced and launched on either Falcon 9 or Starship. That combination of volume and launch access is something no standalone startup can replicate, and it puts SpaceX in direct competition with the companies that currently pay it to reach orbit.
SpaceX to launch military missile tracking satellites through new Space Force contract
The intended market is orbital manufacturing: pharmaceuticals, protein crystals, semiconductors, and advanced optical fiber that physically cannot be produced in the presence of gravity. FAA documents describe Starfall’s long-term purpose as building a “self-sustaining commercial in-space manufacturing market” and as a potential successor to the industrial capabilities of the International Space Station, which is set to retire in the late 2020s. Military rapid global cargo delivery is a parallel application under active discussion with the Pentagon.
The reason some industries seek manufacturing in space comes down to gravity. On Earth, gravity causes materials to settle, separate, and deform during production. In microgravity, those constraints disappear.
SpaceX’s already controls launch access, which means it currently functions as the landlord for every competitor in the orbital manufacturing return space. Starfall converts that landlord position into vertical ownership, and it would no longer just carry other companies’ capsules to orbit, but rather operate the capsule, own the return logistics, and capture the service revenue directly. Viewed alongside Starlink, Colossus, and the xAI merger, Starfall fits a consistent pattern: SpaceX identifying infrastructure layers that others depend on and moving to own them outright. Orbital manufacturing return is the next layer on that list.
If Tuesday’s reentry, parachute sequence, and recovery demonstration goes as planned, the second FAA-approved test flight follows. A successful pair of demos would position SpaceX to begin offering Starfall as a commercial service, likely first to pharmaceutical and materials science customers before scaling toward the military and broader manufacturing segments.
The Tesla Semi was spotted mounted with ground truth validation equipment as the company nears its looming launch. The Semi is Tesla’s Class 8 all-electric truck, and has been utilized in its earlier stages by many companies like PepsiCo. and Frito-Lay, who have been using it in a pilot program.
The Semi was spotted in Sunnyvale, California, and sports a typical ground truth validation unit that Tesla routinely uses on its vehicles. Ground truth validation is essentially the process of training supervised algorithms to ensure they can perform reliably. Tesla typically performs this on vehicles that are being released soon:
Spotted the new semi adorned with ground truthing equipment. Haven’t seen anyone post this so figured I’d share.
The future is autonomous!!@SawyerMerritt @wholemars pic.twitter.com/qkPDHPUQZ6
— Danny (@dannywinner1) June 21, 2026
The Semi being spotted with this type of validation rig is important because it means the company is working on solidifying a Full Self-Driving model for its commercial vehicle offering. This would be a massive development for not only Tesla but also the logistics industry as a whole.
There are strict regulations on driving hours for commercial truck drivers, and autonomy is a way to potentially combat these issues. FSD is already a widely effective way that owners of typical passenger vehicles take stress out of travel. Even launching a semi-autonomous platform for truck drivers to use to increase safety, reduce fatigue, and increase productivity would be a huge development.
Tesla Semi gets strange-but-understandable comparison from Jay Leno
The Semi has already proven to be an ideal solution for companies that use commercial logistics. It has increased efficiency and reduced operating costs for many companies that have been able to use it in pilot programs.
There are expected to be some bumps along the way. Tesla saw some challenges with FSD on the Cybertruck, as it had never had a vehicle with cameras at that height, so some of the features with FSD were not immediately available. Just a week ago, Tesla launched Actually Smart Summon (ASS) for Cybertruck, nearly three years after the vehicle was first delivered to customers.
President Donald Trump unveiled an upgraded Boeing 747-8 at Joint Base Andrews on June 19, 2026, describing the Qatar-gifted aircraft as an interim Air Force One equipped with advanced communications systems, including Starlink, Elon Musk’s SpaceX satellite internet service.
The plane, valued at around $400 million and modified for presidential use, serves as a bridge until the delayed VC-25B replacements arrive. Trump highlighted its luxury features and new technology during remarks to service members.
Trump stated:
“We have communication equipment up there that nobody’s ever seen before. It’s the highest level and, uh, including Starlink. My friend Elon is going to be very happy, but, uh, Starlink and we have, uh, four or five different sets of double and triple communications like people haven’t seen.”
He added:
“And it represents what can happen with hard work, innovation, and aggressive timelines because we did this quickly and yet there’s never been communication like is on this plane.”
🚨 President Trump confirmed today that the new Air Force One is equipped with Starlink:
“We have communication equipment up there that nobody’s ever seen before, it’s the highest level and including Starlink…my friend Elon is going to be very happy.” pic.twitter.com/IhkDmtr5hL
— TESLARATI (@Teslarati) June 20, 2026
The aircraft features a redesigned red, white, and blue livery and has been outfitted with Starlink satellite connectivity alongside other secure systems.
Trump praised the plane’s uniqueness, calling it among the world’s most luxurious. The gift from Qatar and subsequent modifications have drawn attention, with the jet positioned as a solution for presidential travel. It is expected to support operations, including potential ceremonial roles such as Fourth of July flyovers.
The event marked the formal introduction of the converted jet, which will help maintain capabilities while the primary Air Force One fleet undergoes modernization. Defense observers note the inclusion of commercial satellite technology like Starlink as part of efforts to ensure resilient communications, crucial to keep the country running as the President is in the sky.
President Trump’s comments underscored appreciation for rapid upgrades and innovation in equipping the aircraft. The plane remains a U.S. government asset and is slated for eventual transfer related to presidential library purposes after its service.
SpaceX is launching a secret spacecraft that could change how things are made in space
Tesla Semi spotted with ground truth validation equipment as launch looms
