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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.
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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 In 2019, the Trump administration rescinded that waiver, before the EPA was given power to reinstate it under the Biden administration in 2022.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
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla has expanded the footprint of a massive safety feature worldwide with a recent Software Update labeled as 2026.20.6. The expansion of the “Blind Spot Warning While Parked” feature represents the more widespread availability of the feature, which aims to prevent “dooring.”
Dooring is when a driver or passenger opens a car door into the path of an oncoming road user, usually a cyclist or motorcyclist. It is among the most common types of cycling accidents, the League of American Bicyclists says.
For this reason, Tesla created a feature that warns occupants not to open the door because an object is approaching. The feature will sound a chime, and it will also delay the opening of the door to prevent an incident.
The release notes state (via Not a Tesla App):
“If you attempt to open a door while an approaching object is detected in your blind spot (for example, a bicyclist approaching from behind) a chime sounds, and your door will not open upon initial button press. Wait a short time and press the button a second time to override the warning.”
Tesla initially rolled out this feature back in 2024 with the Model 3 “Highland.” However, it remained with the Model 3 exclusively for over a year; that was until Tesla added it to the Cybertruck this past Spring.
Now, it is making its way to the new Model Y, 2021 and newer Model S, and 2021 or newer Model X.
The prevention of dooring incidents could eliminate many injuries to cyclists, especially in an urban setting. Dooring accounts for 10-20 percent of bike-related crashes in major cities, and over 17,000 dooring-related incidents were treated in the U.S. over the course of a decade. These usually involve fractures, contusions, and head trauma.
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
SpaceX gets initial stock coverage from Tesla’s biggest bull
