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EPA official forgets Tesla and new EV makers in scathing criticism of 'unattainable' emissions standards

A Tesla Model 3 driving at night. (Photo: Andres GE)

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In a flash of dramatic irony, Andrew Wheeler, the Administrator of the US Environmental Protection Agency, praised the Trump administration’s Safer Affordable Fuel Efficient (SAFE) Vehicles rule, a rollback of fuel economy standards that would allow automakers to sell more polluting vehicles in the United States.

“Too many reporters fail to mention one very important point: the Obama era CAFÉ standards were not attainable by the auto industry. The truth is, the SAFE rule sets realistic standards, will reduce pollution, and save lives!” Wheeler posted.

Such statements, of course, attracted strong responses. In a call with reporters on Tuesday, California attorney general Xavier Becerra remarked that the EPA Administrator’s Twitter announcement was downright wrong. “(EPA administrator Andrew Wheeler) issued a tweet saying that this new rule would save lives, and reduce pollution, and that it would provide significant benefits to the American economy. In each case, he’s wrong,” Becerra said.

https://twitter.com/EPAAWheeler/status/1245041250497179649?s=20

On Tuesday, the National Highway Traffic Safety Administration and the Environmental Protection Agency announced the SAFE standards that will take the place of the Obama-era Corporate Average Fuel Economy (CAFE) rules, which required about 5% annual improvements in fuel efficiency every year from carmakers.

Under the CAFE rules, the EPA noted that automakers would have been required to sell cars and light trucks with an average fuel efficiency of about 54 miles per gallon in 2026 model cars. With the current administration’s SAFE rules, vehicles could simply average about 40 miles per gallon by 2026 to meet the new standards.

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In a way, Wheeler’s tweet boiled down to one point. The old CAFE standards were simply unrealistic, and America needs the new SAFE rules to make sure automakers and car buyers win out. Interestingly enough, the EPA official’s post came amidst an ongoing climate crisis and a literal pandemic that involves a virus attacking people’s capability to breathe.

Bad timing and taste aside, the EPA Administrator appears to have conveniently forgotten one particular American carmaker that has had absolutely no problem meeting the “unrealistic” standards of the Obama-era CAFE rules. This carmaker currently stands as the most valuable US-based automaker by market cap, and in recent quarters, it has even turned a profit, highlighting the argument that there is a substantial demand and a solid business model for zero-emissions vehicles.

The Tesla Model 3. (Photo: Andres GE)

This carmaker, of course, is Tesla. The company had been producing electric cars since 2008, and it has been mass-producing vehicles since 2012. With the Model 3, Tesla started breaking into the mainstream market, with some car buyers trading in otherwise more affordable vehicles to acquire the electric sedan. A crossover, the Model Y, has begun deliveries ahead of schedule, and if initial impressions from professional reviewers are any indication, there’s a good chance that the all-electric crossover will be a disruptor as well.

With the United States’ SAFE rules, automakers like Ford and GM will likely have less incentive to push electric cars. This may be detrimental to both companies, considering that leaked production plans from both GM and Ford have shown that the veteran automakers are still committed to the internal combustion engine despite their pro-EV rhetoric. This could be a costly move for GM and Ford, since territories outside the United States, such as Europe and China, have committed to electrification.

But amidst all these, there is a silver lining. If veteran automakers like Ford and GM will not step up to the plate and provide good electric cars to meet the demand from buyers, a new breed of EV companies will. Tesla has proven that a well-designed, feature-rich, all-electric car like the Model 3 can dominate their established internal combustion counterparts. There’s a good chance that vehicles like the Cybertruck, or perhaps Rivian’s R1T, could do the same for high-end F-150s and RAM trucks.

In a way, the adjustment of the United States’ emissions standards could prove to be an opportunity for electric car makers. Beyond the United States, after all, authorities are going all-in on electric cars. And for some territories such as Europe and China, there is no more turning back.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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SpaceX Starship just nailed something it’s never done before

SpaceX’s Starship flew successfully Friday, landing both stages and deploying its first Starlink V3 satellites.

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Starship’s thirteenth test flight delivered exactly what SpaceX needed with a clean liftoff, two successful stage recoveries, and the first real payload the vehicle has ever carried to space. Booster 20 and Ship 40 lifted off at 5:51 p.m. CT from Starbase, and by the time the mission wrapped roughly an hour later, both halves of the rocket had done exactly what they were supposed to do.

Booster 20 separated from Ship 40 a few minutes into the flight and stuck a controlled splashdown in the Gulf of Mexico about six minutes after liftoff. That is a meaningful turnaround from Flight 12 in May, when the booster lost several engines during its boostback burn before a hard water landing attempt.


Starship 40’s performance was arguably the bigger win. The vehicle deployed the first 20 operational Starlink V3 satellites Starship has ever carried, then flew a suborbital arc to a landing in the Indian Ocean that SpaceX commentator Dan Huot called the company’s softest splashdown yet. “This is a dream scenario for this team that’s trying to get this heat shield data,” Huot said on the live broadcast, according to Space.com’s live coverage. “I’m a little over the moon right now. Wow. Lucky number 13.”

Unlike the mass simulators SpaceX flew on Flight 12, these were production Starlink V3 satellites, meant to extend solar arrays and antennas and attempt to link with the broader constellation before reentering minutes later. Getting real hardware through a full deploy sequence on only the second flight of the V3 generation keeps Starship on schedule for the payload work NASA is counting on for future Artemis lunar landings.

— TESLARATI (@Teslarati) July 25, 2026

The flight also arrives at a moment when SpaceX needed a win. SPCX has traded below its $135 IPO price since mid-July, as Teslarati reported when the mission slipped to Friday, and short interest has climbed to roughly a third of the tradable float. A clean flight will not fix a balance sheet, but it does answer the one question SpaceX absolutely needed answered this week: whether the fixes made after the July 16 abort would hold up under real flight conditions. They did, on both stages, on the first try after the redesign.

SpaceX has not set a target date for Flight 14, though the company has said it wants to push toward an orbital attempt on the next mission. After Friday, that goal looks a lot more within reach.

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Tesla’s Supercharger Diner probably just secured more locations

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tesla diner
Credit: Tesla

Tesla’s Supercharger Diner in Los Angeles dominated the company’s global usage rankings after just one year, proving the concept is more than just a one-off novelty location that will fade away.

The performance could incite the company to build more locations, something that CEO Elon Musk has hinted at for some time.

Tesla’s Supercharger Diner delivered 21.2 GWh of energy in its first year of operation, the company’s head of Charging, Max de Zegher, revealed on X. Of the top 10 most utilized Supercharger locations in Tesla’s global infrastructure, the Diner in Los Angeles was the most used by drivers, and it wasn’t particularly close:

On its launch day one year ago, nobody was too sure what the Tesla Diner would be about. It seemed like an interesting concept, and considering it had been in the works for years, it was a highly anticipated launch that many were looking forward to.

Based on its success, we could see additional Diners with Superchargers built throughout the United States, and potentially beyond. Musk has said on several occasions that the company would be willing to bring the Diner idea to more markets.

Tesla makes major change at Supercharger Diner amid epic demand

Of the markets that Musk has mentioned, both Palo Alto and Austin have come to be perceived as ideal selections. However, there are no concrete plans as of now to build new Supercharger Diners anywhere; the location on Santa Monica Boulevard will remain the exclusive spot to pick up Tesla-inspired eats, at least for the time being.

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Investor's Corner

Tesla short sellers win big after shares fall after earnings

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A red Tesla Roadster driving around a turn
(Credit: Tesla)

Tesla short sellers won big following the company’s massive fall on Wall Street after it reported subpar Earnings on Wednesday.

Tesla short sellers collected about $4.12 billion in single-day profits on Thursday, according to BloombergShares fell as much as 15 percent during Thursday’s session. It closed as one of the worst days for Tesla on Wall Street in the past three years.

Investors sold off the stock after Tesla said it would aggressively direct its spending toward AI and its Optimus robot project. The company had record revenues, which were driven by one of the strongest quarters in terms of vehicle deliveries in company history.

However, it missed EPS estimates by reporting just $0.33, a far cry from the $0.53 analysts expected.

S3 Partners reported that about 3 percent of Tesla’s outstanding stock is sold short. Managing Director at S3, Ihor Dusaniwsky, provided the short seller’s potential profit, as well as another figure: shorts have likely had paper gains of $8.92 billion this year, as Tesla shares are down 30 percent in 2026.

Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue

Tesla has burned short sellers many times in the past, but the company’s latest Earnings Call was a chance for those skeptics to taste some payback. Although the company gave some very transparent information regarding future projects, the rollout of Robotaxi, Optimus, and Semi, many investors took their profits on Thursday.

Notable short sellers like Michael Burry have been transparent about their skepticism around Tesla shares. Burry just revealed three weeks ago that he had opened up a new short on the stock, stating he shorted Tesla shares at $416.22. “Happy it jumped back to this level,” he said in a blog post.

At the time of publication, Tesla shares were down about 3 percent and the stock was trading at $309.92.

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