Tesla and Carmakers Clash Over US Fuel Efficiency Standards

Tesla is urging the Biden administration to adopt much tougher fuel economy standards through 2032 than those proposed by the National Highway Traffic Safety Administration (NHTSA). While the NHTSA's proposal aims to raise Corporate Average Fuel Economy (CAFE) requirements by 2% annually for cars and 4% for trucks and SUVs, Tesla wants a 6% increase for cars and 8% for trucks and SUVs. This puts Tesla at odds with major automakers, including General Motors, Toyota, and Volkswagen, who have criticized the NHTSA's proposal as unreasonable. The automakers argue that the proposed standards would result in significant fines and disproportionately impact the truck fleet.