The last few years have been quite good for electric car manufacturer Tesla. Rising in popularity and sales, the electric vehicle has received solid reviews from end-users and has become both a hot new ride for many, but also a sign of being environmentally conscious in moving away from gasoline. The Trump administration had sought to put an end to this move, launching lawsuits against states that had imposed tighter emission standards.
Now, with the Biden administration moving forward on more environmental plans, it appears other automakers have decided this is the path forward for them, as well. For American buyers and investors, we may have finally hit a point where we can see the future, and big oil is no longer part of it.
When Tesla reports profits, one of the big reasons it does so is because many car companies end up paying Tesla in regulatory credits. These credits helped make Tesla profitable at the unhappiness of other car manufacturers. The Trump administration was onboard with trying to break this plan by opposing states that held auto manufacturers accountable, like California, Colorado, Maryland, Oregon — 11 states in total.
When President Biden won the election in November, the hopes of a White House that would press that case went away, and now automakers are seeing that they need to offer something different: like improving their own electric line.
Instead, today, GM noted they plan to be carbon neutral by 2040 and end all tailpipe cars by 2035. Ford hasn’t been as forward but is previewing an electric Mustang and their ever-popular F150 truck, combined with other vehicles.
The Biden Presidency is already walking away with a huge win for environmentalists by simply sending the signal that there is a new sheriff in town, and they aren’t interested in dirty air.