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Biden Administration pulls back rule that revises EV mileage ratings

(Photo: Tesla)

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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.

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.

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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.

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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.

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“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.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Tariff reprieve might be ‘Tesla-friendly,’ but it’s also an encouragement to others

Tesla stands to benefit from the tariff reprieve, but it has some work cut out for it as well.

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tesla employee
(Photo: Tesla)

After Secretary of Commerce Howard Lutnick made adjustments to the automotive tariff program that was initially announced, many quickly pointed to the reprieve as “Tesla-friendly.”

While that may be the case right now, it was also a nudge of encouragement to other companies, Tesla included, to source parts from the U.S. in an effort to strengthen domestic manufacturing. Many companies are close, and it will only take a handful of improvements to save themselves from tariffs on their cars as well.

Yesterday, Sec. Lutnick confirmed that cars manufactured with at least 85 percent of domestic content will face zero tariffs. Additionally, U.S. automakers would receive credit up to 15 percent of the value of vehicles to offset the cost of imported parts.

Big Tesla win? Sec Lutnick says cars with 85% domestic content will face zero tariffs

“This is ‘finish your cars in America and you win’,” Lutnick said.

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Many were quick to point out that only three vehicles currently qualify for this zero-tariff threshold: all three are Teslas.

However, according to Kelley Blue Book’s most recent study that revealed who makes the most American cars, there are a lot of vehicles that are extremely close to also qualifying for these tariff reductions.

Tesla has three vehicles that are within five percent, while Ford, Honda, Jeep, Chevrolet, GMC, and Volkswagen have many within just ten percent of the threshold.

Tesla completely dominates Kogod School’s 2024 Made in America Auto Index

It is within reach for many.

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Right now, it is easy to see why some people might think this is a benefit for Tesla and Tesla only.

But it’s not, because Tesla has its Cybertruck, Model S, and Model X just a few percentage points outside of that 85 percent cutoff. They, too, will feel the effects of the broader strategy that the Trump administration is using to prioritize domestic manufacturing and employment. More building in America means more jobs for Americans.

Credit: Tesla

However, other companies that are very close to the 85 percent cutoff are only a few components away from also saving themselves the hassle of the tariffs.

Ford has the following vehicles within just five percent of the 85 percent threshold:

  • Ford Mustang GT automatic (80%)
  • Ford Mustang GT 5.0 (80%)
  • Ford Mustang GT Coupe Premium (80%)

Honda has several within ten percent:

  • Honda Passport All-Wheel-Drive (76.5%)
  • Honda Passport Trailsport (76.5)

Jeep has two cars:

  • Jeep Wrangler Rubicon (76%)
  • Jeep Wrangler Sahara (76%)

Volkswagen has one with the ID.4 AWD 82-kWh (75.5%). GMC has two at 75.5% with the Canyon AT4 Crew Cab 4WD and the Canyon Denali Crew Cab 4WD.

Chevrolet has several:

  • Chevrolet Colorado 2.7-liter (75.5%)
  • Chevrolet Colorado LT Crew Cab 2WD 2.7-liter (75.5%)
  • Chevrolet Colorado Z71 Crew Cab 4WD 2.7-liter (75.5%)

These companies are close to reaching the 85% threshold, but adjustments need to be made to work toward that number.

Anything from seats to fabric to glass can be swapped out for American-made products, making these cars more domestically sourced and thus qualifying them for the zero-tariff boundary.

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Frank DuBois of American University said that manufacturers like to see stability in their relationships with suppliers and major trade partners. He said that Trump’s tariff plan could cause “a period of real instability,” but it will only be temporary.

Now is the time to push American manufacturing forward, solidifying a future with more U.S.-made vehicles and creating more domestic jobs. Tesla will also need to scramble to make adjustments to its vehicles that are below 85%.

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Tesla Cybertruck RWD production in full swing at Giga Texas

Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.

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Credit: Joe Tegtmeyer/X

It appears that Tesla is indeed ramping the production of the Cybertruck Long Range Rear Wheel Drive (LR RWD), the most affordable variant of the brutalist all-electric pickup truck.

Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.

Giga Texas Footage

As per longtime Tesla watcher Joe Tegtmeyer, Giga, Texas, was a hotbed of activity when he conducted his recent drone flyover. Apart from what seemed to be Cybercab castings being gathered in the complex, a good number of Cybertruck LR RWD units could also be seen in the facility’s staging area. The Cybertruck LR RWD units are quite easy to spot since they are not equipped with the motorized tonneau cover that is standard on the Cybertruck AWD and Cyberbeast.

The presence of the Cybertruck LR RWD units in Giga Texas’ staging area suggests that Tesla is ramping the production of the base all-electric pickup truck. This bodes well for the vehicle, which is still premium priced despite missing a good number of features that are standard in the Cybertruck AWD and Cyberbeast.

Cybertruck Long Range RWD Specs

The Cybertruck LR RWD is priced at $69,990 before incentives, making it $10,000 more affordable than the Cybertruck AWD. For its price, the Cybertruck Long Range RWD offers a range of 350 miles per charge if equipped with its 18” standard Wheels. It can also add up to 147 miles of range in 15 minutes using a Tesla Supercharger.

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Much of the cost-cutting measures taken by Tesla are evident in the cabin of the Cybertruck LR RWD. This could be seen in its textile seats, standard console, seven-speaker audio system with no active noise cancellation, and lack of a 9.4” second-row display. It is also missing the motorized tonneau cover, the 2x 120V and 1x 240V power outlets on the bed, and the 2x 120V power outlets in the cabin. It is also equipped with an adaptive coil spring suspension instead of the adaptive air suspension in the Cybertruck AWD and Cyberbeast.

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Elon Musk

Tesla preps for a Cybercab takeover of the Robotaxi platform after pilot program

Tesla looks to be preparing the Cybercab for Robotaxi operation as castings pile up at Gigafactory Texas.

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(Credit: Teslarati)

Tesla is evidently preparing for the Cybercab to take over the Robotaxi platform after the pilot program in Austin, Texas, is launched.

That claim is made based on new drone footage from Gigafactory Texas captured by Joe Tegtmeyer, who found hundreds of Cybercab castings that have accumulated on property in Austin.

The Cybercab is Tesla’s dedicated Robotaxi vehicle that was unveiled last October. It features just two seats and is minimalistic, aimed toward allowing the Full Self-Driving suite to chauffeur passengers from Point A to Point B without ever having to deal with human interaction or any responsibilities within the vehicle.

In June, Tesla plans to launch its first Robotaxi rides in Texas. Although employees in Austin and in the Bay Area of San Francisco have already had access to over 1,500 trips and 15,000 miles of autonomous (but supervised) travel, Tesla plans to launch a driverless version in a limited fashion in June.

However, this initial pilot program, while presumably operating on an Unsupervised version of the FSD, will only utilize Model Ys, at least at first.

The drone footage captured by Tegtmeyer today seems to tell a story of a quick transition to the Cybercab for the Robotaxi responsibilities, especially as Tesla gets its feet wet with the early Unsupervised FSD rides and gains confidence in the fleet’s ability to navigate passengers:

It appears that between 400 and 500 Cybercab castings can be seen in the images Joe captured, a very respectable number considering the company said it will not launch the Robotaxi with the initial rides it gives in Austin.

The images seem to paint a picture that Tesla is truly ready to get things moving in terms of the Cybercab project. While it does not plan to use the vehicle initially, its manufacturing efforts for the car are being prepared by stacking these castings so they’re ready to be expanded upon into the real thing.

On the most recent Earnings Call, Tesla’s VP of Vehicle Engineering, Lars Moravy, said the Cybercab’s engineering has progressed over the last several months to “derisk things like corrosion, the ceiling across the seams of the vehicle, and when you marry several components,” and even things like early crash testing have already taken place.

Moravy continued, “As with all that combined, we kind of go into the builds that we have in this quarter for the Cybercab product, and that’s the next real big test of full-scale integration with the unboxed process. And that’s kind of where we are. So you’ll see them on the test roads in a couple of months.”

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