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U.S. Supreme Court to hear challenge on California emission rule waiver

Image Credit: Joe Tegtmeyer/Twitter

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The U.S. Supreme Court is set to hear a challenge from fuel companies against California’s ability to create its own emissions rules, in a case that could set a major precedent for how states handle making their own standards in efforts to lower greenhouse gas emissions through electric vehicle (EV) adoption.

After the Environmental Protection Agency (EPA) granted California an exemption from federal air pollution laws in 2022, effectively letting the state set its own vehicle emissions rules, the U.S. Supreme Court last week agreed to listen to a bid from a Valero Energy subsidiary and other fuel groups to challenge the exemption (via Reuters).

Valero’s Diamond Alternative Energy and other associated fuel business lobby groups argue that the waiver oversteps the power of the EPA under the Clean Air Act, under which the federal rules are set. The groups also argued that such a decision would lower demand for their liquid fuels, ultimately inflicting harm on their bottom line.

RELATED: U.S. Congressman urges President Biden to end EV transition goals

In the appeal, the groups also said that California was overstepping its power, acting as a “junior-varsity EPA” by making regulatory decisions to combat climate change and force the adoption of EVs upon consumers—choices the group says the state does not have the right to make.

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The decision also comes after the EPA was backed by the U.S. Court of Appeals for the District of Columbia in April, with the court throwing out a legal challenge against the waiver from a group of 17 Republican-run states. In that appeal, backers also argued that California’s ability to set its own emissions rules gave the state unconstitutional regulatory power, which they said isn’t available to other states.

The waiver has long been a point of contention, originally dating back to a 2013 decision to offer California the waiver. In 2019, the Trump administration rescinded that waiver, before the EPA was given power to reinstate it under the Biden administration in 2022.

California has also been a leader in pushing EV adoption through massive incentives, and an official ruling later in 2022 to ban the sale of new gas cars beginning in 2035. That ruling has since been followed by a handful of other states, including New Jersey, New York, Oregon, and Washington.

Last year, California’s battery-electric vehicle (BEV) sales also made up around one-third of all U.S. BEV sales, as led by Tesla.

Passed by the California Air Resources Board (CARB), the California ban also includes a gradual phase-out of gas vehicles set to begin in 2026, for which the state also required an EPA waiver. California has gained over 75 separate waivers since 1967, through which it has been able to lodge increasingly strict rules surrounding vehicle emissions performance and EV sales.

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In February, the EPA actually loosened federal standards requiring automakers to sell a certain ratio of EVs by 2032. Previously, the agency required that automakers make 60 percent of sales come from BEVs and plugin hybrids by 2030, increasing that to 68 percent by 2032. Now, the agency mandates that manufacturers make 50 percent of their overall sales either plugin hybrids or BEVs by 2030.

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

California’s proposed 2035 EV sales mandate faces scrutiny at EPA hearing

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Investor's Corner

Tesla analyst’s firm has sold its entire TSLA position: Here’s why

Tesla analyst Gary Black revealed his firm, The Future Fund, has sold their entire $TSLA holding.

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(Credit: Tesla)

Tesla analyst Gary Black of The Future Fund revealed today that his firm has sold its entire $TSLA holding, marking the first time since 2021 that it has not had a position in the company’s stock.

Black has been a skeptic of the company and relatively pessimistic regarding some things many investors would consider catalysts, outlining his concerns and reasoning for selling the shares.

Much of Black’s reasoning concerns Tesla’s price-to-earnings ratio, delivery results and potential delivery figures for the future, and other near-term projects that he does not believe will yield as much value as others perceive.

We will break down each concern of Black’s below:

‘Disconnected from Underlying Fundamentals’

Black says that The Future Fund sold its holdings at $358 per share. The firm’s current price target is at $310, and he says it will remain there based on “our forecast of 2030 Tesla volumes of 5.4m and 2030 Adj EPS of $12.

Main Concern is P/E Ratio

The main concern Black and The Future Fund have is that TSLA “now sells at a 2025 P/E of 188x as earnings estimates continue to fall (-5% in the past week, -40% YTD) driven by weak YTD deliveries, including weak April results.”

Black says he believes quarterly deliveries will decline by 12 percent, and full-year by 10 percent.

This compares to Wall Street’s estimates of a 7 percent decrease for Q2 and a 5 percent year-over-year.

Robotaxi Skepticism

“We believe the risk/reward associated with the Austin robotaxi test remain asymmetrical to the downside,” Black writes in his post on X.

Tesla Robotaxi deemed a total failure by media — even though it hasn’t been released

Many believe the Robotaxi platform could be Tesla’s biggest catalyst moving forward, especially as other automakers do not seem to have even close to as robust a solution to self-driving as Tesla.

Tesla’s Affordable Models

Black says there are concerns the affordable model will be “a stripped-down Model Y priced lower and funded by lower costs rather than a new form factory that expands TAM.”

This is confusing, especially considering the cheaper price tag would expand the total addressable market (TAM) to begin with. The Model Y has been the best-selling vehicle in the world for the past two years.

Tesla still on track to release more affordable models in 1H25

Introducing an even lower-cost model with some missing features would still likely be a significantly more attractive option than a base model ICE vehicle, especially because the value Full Self-Driving provides would make the car more beneficial.

“This increases odds that FY’25 estimates decline further, risking a repeat of 2023-2024, when TSLA reduced EV prices supported by lower costs, and TSLA saw little or no incremental volume growth,” he finishes with.

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Tesla gets major upgrade that Apple users will absolutely love

Tesla is unloading a new feature for iPhone users that they will absolutely love.

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Credit: Tesla Inc.

Tesla is giving its owners who use iPhones and the iOS platform a major upgrade that will make the vehicles more compatible with the current capabilities of Apple devices.

Much to the chagrin of Android users, Apple iPhone users who own Teslas are usually the first to get new features.

However, Tesla is rolling out a new feature to iPhone users that will only be available to them, as Live Update compatibility is now rolling out.

Live Updates on the iPhone allow users to track the progress of tasks while using other apps. For example, uploading a post on X can be tracked while using an internet browser, as the Dynamic Island, the small display near the speaker on an iPhone, will show progress.

Tesla will now do this for Supercharging, a new update shows. The Dynamic Island is not the only thing that will monitor the progress of Supercharging, though. Updates will also be visible on the lock screen and as a drop-down notification:

You will need iOS 17.2 or newer to use this feature.

The Supercharging updates will show the current State of Charge (SoC), time remaining, and price of the current session. These notifications will make the charging process easier when you’re not inside your Tesla, as many Superchargers are located in retail settings.

You’ll be able to monitor the price and time remaining with a quick glance at your phone.

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Tesla rolls out new crucial safety feature aimed at saving children

Tesla has been working on this child detection feature for several years.

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(Credit: Tesla)

Tesla is finally rolling out a new, crucial safety feature that is aimed at saving children from being left in the car.

Over the past few months, we have reported on a feature Tesla was planning to roll out in its vehicles that would help keep children out of hot cars unattended.

Tesla set to roll out new child safety and navigation features, coding shows

The company has been working on a solution to this problem for several years, as it has been working on an ultrawave sensor that would detect heartbeats instead of movement, as cameras would.

Now, Tesla is implementing the feature in its vehicles with Software Update 2025.14.12, calling it “Child Left Alone Detection.”

The release notes, via Not a Tesla App, show that the vehicle and the Tesla app will both make various attempts to alert the driver of a child in the car:

“If an unattended child is detected, the vehicle will flash the exterior indicator lights, play an alert tone, and send a notification to your Tesla app. This will repeat at regular intervals until you return to your vehicle. Cabin data is processed locally and is not transmitted to Tesla.

This feature is enabled by default. To disable, go to Controls > Safety > Child Left Alone Detection.”

Tesla later said that the feature is currently rolling out to mid-2023 and later Model 3 vehicles in Europe initially, while other models and regions will receive the update in the coming months.

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