Electric vehicle producer Tesla (TSLA) has knocked plans by U.S. authorities to roll back vehicle emissions standards and a 2009 finding that establishes the impact of greenhouse gas (GHG) emissions on human health.
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In a written address to the U.S. Environmental Protection Agency (EPA), Tesla noted that the plan to roll back the vehicle emissions standards “would have a highly disruptive and unlawful retroactive result.” The EV maker further argued that the agency had not put forward a sufficient legal or factual basis to repeal the standards.
“The proposal would give a pass to engine and vehicle manufacturers for all measurement, control, and reporting of GHG emissions for any highway engine and vehicle, including for model years manufactured before this proposal,” Tesla said in the comment letter dated September 22, 2025.
Trump’s Anti-Climate Campaign Ruffles Tesla
In July, the EPA announced plans to scrap its regulations on auto tailpipe emissions, as part of a broader endeavor by President Donald Trump’s administration to relax regulations aimed at mitigating the effects of climate change.
In 2009, the EPA’s investigation concluded that GHG emissions—including CO₂, methane, and others—endanger public health and welfare. The finding spurred the agency, under the Clean Air Act, to establish the legal basis for federal vehicle emission standards.
However, the rules have been on the chopping block as Trump’s anti-climate rhetoric continues to gain ground. In July, the Trump administration approved a tax law that targets EV incentives introduced by predecessor Joe Biden, under the Inflation Reduction Act passed in 2022.
The new law includes a provision that could terminate the $7500 credit Americans receive when they buy electric vehicles. It will also depenalize automobile manufacturers that do not meet federal fuel economy standards.
In the letter, Tesla noted that the emission standards and the climate findings acted as a springboard for its massive investment in product development and production. They have also helped to turbocharge innovation and market competitiveness among American car makers, the company said.
The Trump administration’s crackdown on emission standards comes at a time when Tesla is battling sales troubles in Europe and at home. In August, its share of the American EV market tumbled to an eight-year low.
What is the Prediction for Tesla Stock?
Turning to Wall Street, Tesla’s shares currently have a Hold consensus recommendation on TipRanks. This is based on 15 Buys, 12 Holds, and eight Sells assigned by 35 Wall Street analysts over the last three months. Moreover, the average TSLA price target of $329.77 suggests a 22% downside risk from the current level.
