Some automakers failed to meet U.S. fuel economy standards, and Tesla asked the court to impose heavy civil penalties on the manufacturers, but the U.S. Court of Appeals rejected Tesla’s request. Tesla sells credits to other automakers to help them meet vehicle emissions standards set by the U.S. government. After Trump took office, the policy was revised, and Tesla believes that this policy has reduced the value of points.
NHTSA is already reviewing Trump’s policies, which will take six months. The court refused to act until the assessment was complete, so dismissed Tesla’s request. Automakers believe higher penalties will cost them at least $1 billion a year. At the last minute, Trump delayed an Obama-era bill that would more than double the fines for automakers that fail to meet corporate average fuel economy (CAFE) standards.
Tesla last August asked NHTSA to rescind Trump’s order. General Motors, Toyota, Ford, Volkswagen opposed Tesla’s proposal. Chrysler parent Stellantis was fined about $150 million for not meeting requirements in 2016 and 2017, which it said would cost it 521 million euros ($597 million) if the penalties were increased.