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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Tesla rolls out most aggressive Model Y lease deal in the US yet
With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Zero downpayment leases
The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment.
Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.
Premium freebies included
Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.
A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing.
@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
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Tesla is looking to phase out China-made parts at US factories: report
Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.
Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.
The update was initially reported by The Wall Street Journal.
Accelerating North American sourcing
As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.
The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.
Industry-wide reassessments
Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report.
General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration.
@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
News
Tesla owners propose interesting theory about Apple CarPlay and EV tax credit
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.
However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.
Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.
After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.
However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.
Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:
Everyone thinks they need it. I would think that too if I didn’t know how good Tesla’s interface was. CarPlay is a crappy layer on top of crappy info-navs, and people think it’s an imperative because it provides a level of consistency from car to car. They have no clue how much…
— Rich Stafford (@r26174_rich) November 14, 2025
How can it not be when the best engineers choose Tesla over Apple and Tesla’s core focus is auto vs Apple being mobile. It’s what Tesla does every day. It’s a side project for Apple. Still Apple is much better than any other auto OEM who attract lesser talent and make digital…
— Emu (@confessedemu) November 14, 2025
Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
Tesla rolls out most aggressive Model Y lease deal in the US yet
Tesla is looking to phase out China-made parts at US factories: report
Tesla owners propose interesting theory about Apple CarPlay and EV tax credit
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