Prominent electric vehicle manufacturer, Tesla (NASDAQ:TSLA) on Tuesday, called upon the Biden administration to swiftly solidify more rigorous fuel economy standards through 2032 than those initially proposed by U.S. regulators, placing the automaker at odds with major OEMs.
In July, the National Highway Traffic Safety Administration (NHTSA) introduced a proposal to elevate the Corporate Average Fuel Economy (CAFE) car requirements by 2% annually and by 4% for trucks and SUVs between 2027 and 2032.
However, Tesla advocates for the agency to formalize regulations that would amplify the strictness for cars by 6% annually and 8% for trucks and SUVs, emphasizing the potential to efficiently "conserve energy and combat climate change."
A group of automakers on Monday, consisting of companies like General Motors (NYSE:GM), Toyota (NYSE:TM), and Volkswagen (ETR:VOWG_p) criticized the proposal from NHTSA, calling it unreasonable.
The American Automotive Policy Council, speaking for the Detroit Three automakers, separately asked NHTSA to lower its suggested fuel economy improvements to 2% each year for trucks.
The council emphasized that a significant 83% of the vehicles produced by Ford (NYSE:F), GM, and Stellantis (NYSE:STLA) are trucks.
In response, NHTSA stated that its regulation aims to help Americans save money on fuel and bolster the nation's energy independence. They also estimated that the benefits of the proposal outweigh the costs by over $18 billion.
Shares of TSLA are up 0.30% in mid-day trading Tuesday.
Shares of GM, F, and STLA are up 1.70%, 1.89% and 1.72% respectively.