Tesla pressured the UK government to strengthen rules on carbon emissions from cars and trucks, according to documents that also show the electric car maker continued to push for tax increases on cars that run on fossil fuels.
The US carmaker, led by Elon Musk, pushed for the British government to strengthen its zero-emission vehicle (ZEV) mandate for cars and introduce equivalent standards for heavy-duty vehicles (HGV), in a letter to Lilian Greenwood, the Labor representative. Minister of Highways.
Musk has started a public dispute with the Labor Party, but his company has been more complimentary. A Tesla vice president wrote in July that “we applaud Labour’s strong position for decarbonisation of the energy system by 2030, growth and net zero.” The letter was obtained under freedom of information laws by the Fast loading newsletter and shared with The Guardian.
Tesla’s message contrasts with that of several rival automakers, which have aggressively pushed for the rules to be relaxed. Under the ZEV mandate, manufacturers must sell more electric cars each year, but manufacturers with British operations have argued that there is not enough demand for electric cars.
The UK government indicated last month that it will relax regulations for its ZEV mandate in cars, after complaints from manufacturers including Ford, Land Rover owner JLR, and Peugeot owner Stellantis that it was jeopardizing their British businesses.
By contrast, Tesla argued that “continued progress and further strengthening of the zero-emission vehicle mandate is needed” because faster sales of new electric cars will mean the used electric car market will develop at a faster pace. fast.
For trucks, imposing a mandate would likely stimulate the electric heavy-duty vehicle market just as Tesla tries to sell its first model, the Tesla Semi. In 2017, Musk promised that the vehicle would be in production in 2019. That prediction, as is often the case with Musk, was wildly optimistic, but the company now says it will begin production in 2026, and prototypes have gone through Road tests in California carried out by the transport company DHL..
Tesla wrote in the letter that “urgent action is needed” to address truck emissions. He wrote: “The government should start consulting on a ZEV mandate for heavy vehicles, as soon as possible.”
He added that “the UK is falling behind” the EU, which has emissions reduction regulations for trucks. In the EU, manufacturers must reduce average emissions by 45% in 2030 compared to 2019, and by 90% by 2040.
A mandate for ZEV trucks would likely benefit Tesla because it could open a lucrative new market for “credits” that could be sold to rival manufacturers.
Tesla has long advocated for stricter rules on clean transportation, driven by Musk’s belief that carbon emissions should be taxed because they represent a “priceless externality.”
Tesla has argued in previous submissions to the government that taxes on gasoline and diesel cars should be increased. In its latest letter, the company said subsidies, if considered, should be “revenue neutral,” with higher taxes on fossil fuel-powered cars to subsidize electric car sales.
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Despite Musk’s embrace of Donald Trump and far-right global warming deniers – much to the chagrin of many environmentally conscious Tesla buyers – the car company continues to earn huge amounts from selling credits to their rivals. It raised $2.1 billion (£1.65 billion) from loans in the first nine months of 2024, according to the New York Times.
Trump has said he will cut subsidies for electric cars in the United States, a move that could hurt Tesla sales. However, Tesla and Musk stand to benefit indirectly if their rivals are not helped to catch up, while Chinese automakers, who are Tesla’s main global rivals, cannot sell to the United States through 100% tariffs.
Musk is also expected to use his access to Trump to push for looser regulation of the self-driving car industry, which Tesla expects to be a key part of future revenue growth as it produces a new Cybercab self-driving taxi. In its letter, Tesla also stated that the UK has an “opportunity to lead” the development of self-driving technology.
Tesla declined to comment further.