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U.S. Supreme Court to hear challenge on California emission rule waiver
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.
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 In 2019, the Trump administration rescinded that waiver, before the EPA was given power to reinstate it under the Biden administration in 2022.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.
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.
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California’s proposed 2035 EV sales mandate faces scrutiny at EPA hearing
Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
