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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News
Tesla Insurance is heading to a new state for the first time in years
Tesla Insurance launched back in late 2019, and it was massive because it was the first time a company aimed to cover its vehicle owners in-house without the need for third-party companies.
Tesla Insurance is heading to a new state for the first time in years, as the company is aiming to launch its in-house coverage platform in Florida.
Tesla Insurance launched back in late 2019, and it was massive because it was the first time a company aimed to cover its vehicle owners in-house without the need for third-party companies.
Tesla Insurance goes live with claims of lower rates by 20-30%
However, it has struggled to expand and only offers insurance in twelve states currently.
Tesla Insurance is available in:
- Arizona
- California
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
In California, Tesla cannot offer real-time insurance or telematics due to regulatory rules.
The company uses a Safety Score to adjust rates based on driving behaviors. The current version, which is called Safety Score Beta v2.2, tracks Hard Braking, Aggressive Turning, Unsafe Following, Excessive Speeding, Late-Night Driving, Forced Autopilot Engagement, and Unbuckled Driving to determine the rate it should charge.
Tesla is working to expand into new markets and has filed applications to launch the program into new U.S. states. Back in 2022, it filed to offer insurance to Florida drivers, but it did not launch.
However, the company just filed to update its Private Passenger Auto program in Florida, according to the insurance site CoverageR.
It would be the first new state to obtain Tesla Insurance since Utah and Maryland launched over three years ago.
Tesla has its eyes on other states, including Georgia, New Jersey, Oregon, and Virginia.
It has also tried to expand to Europe, as it opened an office specifically for Insurance. It was also hiring for Legal Counsel specializing in Insurance on the continent, but nothing ever expanded to an actual offering of vehicle coverage.
Tesla Insurance is an advantage for owners specifically because the company is familiar with its vehicles, the parts, and the repair processes that are required to get a car back on the road.
This was a big reason some drivers switched from the previous providers to the in-house Insurance Tesla was able to offer.
News
Tesla launches new interior option for rare Model Y trim
Tesla just launched a new light grey interior option for the Model Y L in China, which will cost $1,120.
Tesla has launched a new interior option for the rare Model Y L trim that is available only in China, marking the first new color for the inside of a vehicle in some time.
Tesla has traditionally stuck with either Black or White interior options with the Model 3 and Model Y, although the Model S and Model X have had additional colors. The Model S and Model X still have a Walnut Cream interior option that costs an additional $2,000.
With the mass market models, however, Tesla has maintained the Black or White selections, until now, at least in China.
Tesla just launched a new light grey interior option for the Model Y L in China, which will cost $1,120.
It differs from the white interior slightly, but it is nice for buyers in China to have this third option:
The new color is only available on the Model Y L in China, so customers who take delivery of other trim levels or in other regions will not have this color available to them, just as the vehicle configuration itself is exclusive to that market.
In terms of whether it will make its way to other markets, CEO Elon Musk has said that the Model Y L could potentially make its way to the United States at the end of 2026, but it is not a certainty.
Musk said:
“This variant of the Model Y doesn’t start production in the U.S. until the end of next year. Might not ever, given the advent of self-driving in America.”
This variant of the Model Y doesn’t start production in the US until the end of next year.
Might not ever, given the advent of self-driving in America.
— Elon Musk (@elonmusk) August 20, 2025
This came as a disappointment to many fans and owners in the U.S. because people here have been pushing Tesla to create and manufacture a new, full-size SUV, or at least something more traditional that competes with vehicles like the Chevrolet Tahoe and Ford Expedition.
While the Model Y L is not on par with the size of those vehicles, it is a longer and larger version of the best-selling Model Y.
Tesla China shows off Model Y L’s manufacturing process in new video
Nevertheless, the new interior option is something we could hopefully see added to U.S. vehicles, although it seems Tesla’s focus is truly dialed in on the Cybercab and expanding Robotaxi and autonomy.
News
Tesla Gigafactory Texas builds its half millionth vehicle
The milestone was shared via Twitter/X by the official @Gigafactories account.
Tesla’s Gigafactory Texas has officially rolled out its 500,000th vehicle, marking a significant achievement in the factory’s history and reinforcing its role as a central hub in Tesla’s vehicle manufacturing network.
The milestone was shared via Twitter/X by the official @Gigafactories account. “Congratulations to the Giga Texas team for building 500k vehicles,” the company’s X post read.
As could be seen in Tesla Manufacturing’s post, the Gigafactory Texas team celebrated the milestone by posting for a photograph with the facility’s half millionth unit, a white Tesla Model Y. The team held balloons that spelled “500K” on its commemorative photo.
Giga Texas, located near Austin, has ramped its operations since its launch, producing Tesla’s Cybertruck and Model Y. Crossing the half-million vehicle mark solidifies the facility’s importance to Tesla’s overall operations, especially considering the fact that the Model Y is the company’s best-selling vehicle.
While Giga Texas is just producing the Model Y and the Cybertruck for now, the facility is also poised to produce the Cybercab. The Cybercab is expected to be Tesla’s highest volume vehicle, with Elon Musk estimating that the company would be producing about 2 million units of the autonomous two-seater per year.
The Cybercab is unlike any vehicle that is currently produced today, and its production would be quite extraordinary. As per Elon Musk’s previous comments, the Cybercab’s manufacturing line would not look like an automotive production line at all. Instead, Musk noted that the Cybercab’s line in Gigafactory Texas would resemble a high-speed consumer electronics line instead.
“We do want to scale up production to new heights obviously with the Cybercab. Cybercab is not just revolutionary car design. It’s also a revolutionary manufacturing process. So I guess we probably don’t talk about that enough, but if you’ve seen the design of the Cybercab line, it doesn’t look like a normal car manufacturing line. It looks like a really high-speed consumer electronics line,” Musk previously stated.
Tesla Insurance is heading to a new state for the first time in years
Tesla launches new interior option for rare Model Y trim
Tesla Gigafactory Texas builds its half millionth vehicle
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