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EPA launches new pollution standards that would kick EV sales into overdrive

(Photo: Tesla)

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The EPA today announced new pollution standards that would likely kick electric vehicle sales into overdrive. The new standards are aimed toward creating healthier communities by cleaning up the air and making things like cardiovascular and respiratory illnesses less likely as they would cut Co2 emissions substantially through 2055.

The new standards apply to light, medium, and heavy-duty vehicles, and build upon the already-existing emissions standards for the light and medium sectors.

EPA expected to drop bombshell ICE vehicle regulation

The first set of proposed standards announced on Wednesday is referred to as the “Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium Duty Vehicles.” Between 2027 and 2055, the standards are expected to avoid 7.3 billion tons of CO2 emissions and would help reduce the presence of fine particulate matter that could cause “premature death, heart attacks, respiratory and cardiovascular illnesses, aggravated asthma, and decreased lung function,” the EPA said.

The proposal would project that 67 percent of new light-duty vehicle sales and 46 percent of medium-duty vehicle sales would be electric by the model year 2032. The light-duty standards alone would reduce projected greenhouse gas emission levels by 56 percent when compared to the MY 2026 standards.

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Meanwhile, medium-duty vehicle greenhouse gas levels would reduce by 44 percent when compared to 2026 model year vehicles.

Heavy-duty vehicle emission standards would help avoid 1.8 billion tons of CO2 through 2055, an equivalent to eliminating all greenhouse gas emissions from the entire U.S. transportation sector for an entire year.

“By proposing the most ambitious pollution standards ever for cars and trucks, we are delivering on the Biden-Harris Administration’s promise to protect people and the planet, securing critical reductions in dangerous air and climate pollution and ensuring significant economic benefits like lower fuel and maintenance costs for families,” EPA Administrator Michael S. Regan said. “These ambitious standards are readily achievable thanks to President Biden’s Investing in America agenda, which is already driving historic progress to build more American-made electric cars and secure America’s global competitiveness.”

Other countries are also taking drastic measures to reduce greenhouse gases. The European Union released its Euro 7 emissions standards, which are expected to rapidly improve the quality of the environment and increase the number EVs on the road.

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.

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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 reveals Tesla’s next Robotaxi expansion in more ways than one

Tesla Robotaxi is growing in more ways than one. Tesla wants to expand and hopes to reach half the U.S. population by the end of the year.

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Credit: Tesla

Tesla CEO Elon Musk revealed the company’s plans for its next expansion of the Robotaxi in terms of both the geofence in Austin and the platform overall, as it looks to move to new areas outside of Texas.

Tesla launched the Robotaxi platform last month on June 22, and has since expanded both the pool of users and the area that the driverless Model Y vehicles can travel within.

The first expansion of the geofence caught the attention of nearly everyone and became a huge headline as Tesla picked a very interesting shape for the new geofence, resembling male reproductive parts.

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The next expansion will likely absolve this shape. Musk revealed last night that the new geofence will be “well in excess of what competitors are doing,” and it could happen “hopefully in a week or two.”

Musk’s full quote regarding the expansion of the geofence and the timing was:

“As some may have noted, we have already expanded our service area in Austin. It’s bigger and longer, and it’s going to get even bigger and longer. We are expecting to greatly increase the service area to well in excess of what competitors are doing, hopefully in a week or two.”

The expansion will not stop there, either. As Tesla has operated the Robotaxi platform in Austin for the past month, it has been working with regulators in other areas, like California, Arizona, Nevada, and Florida, to get the driverless ride-hailing system activated in more U.S. states.

Tesla confirmed that they are in talks with each of these states regarding the potential expansion of Robotaxi.

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Musk added:

“As we get the approvals and prove out safety, we will be launching the autonomous ride-hailing across most of the country. I think we will probably have autonomous ride-hailing in probably half the population of the US by the end of the year.”

We know that Tesla and Musk have been prone to aggressive and sometimes outlandish timelines regarding self-driving technology specifically. Regulatory approvals could happen by the end of the year in several areas, and working on these large metros is the best way to reach half of the U.S. population.

Tesla said its expansion of the geofence in Austin is conservative and controlled due to its obsession with safety, even admitting at one point during the Earnings Call that they are being “paranoid.” Expanding the geofence is necessary, but Tesla realizes any significant mistake by Robotaxi could take it back to square one.

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Tesla warns customers of incentive strategy on EVs as tax credit nears end

If you’re thinking of buying a Tesla, the time to order is now, the company claimed.

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(Credit: Tesla)

Tesla has warned customers about its incentive strategy for qualifying electric vehicles, as the days of both the $7,500 EV tax credit for new EVs and the $4,000 credit for used EVs are coming to a close.

Both tax credits, which impact some of the vehicles in the Tesla lineup, are set to be eliminated at the end of Q3. The phase out of these consumer credits was always in the plans of the Trump Administration, but now we’re in the final quarter of their existence.

As a result, EV companies are scrambling to see how they can reduce costs or make their vehicles more affordable for customers. The $7,500 will price many consumers out of many EVs on the market, and Tesla is not immune to that.

However, Tesla has made a significant push into Q3 deliveries, rolling out numerous incentives to customers, including 0% APR on select purchases, lease deals, free upgrades on certain inventory units, and more.

The extensive list of incentives on Tesla vehicles in the quarter will not get any longer, either. During last night’s Tesla Earnings Call for the second quarter of 2025, company executives stated that their intention for these incentives was to encourage customers to place orders early in the quarter.

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Tesla will only be able to apply the $7,500 credit with deliveries that occur before the end of September. Even if an order is placed before then, delivery must be completed by September 31 to receive the tax credit.

CFO Vaibhav Taneja confirmed that the incentives for the quarter are already out and encouraged customers to place an order sooner rather than later:

“Given the abrupt change, we have a limited supply of vehicles in the US this quarter. As we are already within lead times to order parts for cars, we have rolled out all our planned incentives already and will start pairing them back as we start to sell. If you are in the US and looking to buy a car, let’s roll now as we may not be able to guarantee delivery for orders placed in the later part of August and beyond.”

The loss of the incentives will impact every EV maker in the United States. Tesla has a plan moving forward, and it said last night that its affordable models would be rolled out in Q4, as introducing these cars any earlier could have detrimental effects on Model 3 and Model Y sales.

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Tesla Model Y awarded Top Safety Pick+ from IIHS

The new Model Y continues to impress with this new award.

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(Credit: Tesla)

The 2025 Tesla Model Y was one of two midsize luxury SUVs to receive the Top Safety Pick+ award from the Insurance Institute for Highway Safety (IIHS).

To qualify for the IIHS’s Top Safety Pick+ or even the lower-tier Top Safety Pick label, vehicles need good ratings in the small overlap front and side crash tests, an acceptable or good rating in the pedestrian front crash prevention evaluation, and acceptable or good ratings for headlights across all trim levels.

The difference between the two labels is that an “Acceptable” rating in the moderate overlap front test will get a car the Top Safety Pick rating, but a “Good” rating in this category will win the elusive Top Safety Pick+ category.

The 2025 Model Y, codenamed “Juniper” internally by Tesla, was released in the United States earlier this year and received the top rating across each of the categories, automatically qualifying it for the Top Safety Pick+ label:

Other vehicles in Tesla’s lineup have extraordinary marks in crash testing according to other agencies, like the National Highway Traffic Safety Administration (NHTSA), but there are reasons those cars are not on the IIHS lists.

In 2024, we reported that the IIHS had evaluated some Tesla vehicles for the necessary tests to achieve these marks. Joe Young of the agency told us that the Model 3, for example, was not featured on either the Top Safety Pick or Top Safety Pick+ lists because the vehicle had several missing tests.

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Here’s why the Tesla Model 3 wasn’t an IIHS Top Safety Pick+, and why it could be soon

This is not to say those other Tesla vehicles would not perform well. The Cybertruck performed better than any pickup has ever in NHTSA crash testing assessments.

The Model Y is Tesla’s most popular vehicle and was the best-selling car in the world over the past two years. Tesla’s intense focus on safety continues to show that this priority goes into every decision the company makes regarding design and engineering. This focus has continued to pay dividends as some real-world crashes save the lives of those inside the cars.

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