FILE PHOTO: A Tesla car charges at a charging station in Beijing, China, April 18, 2017. REUTERS/Thomas Peter
11:12 AM 05/18/2018
Tesla is joining California and other states in a lawsuit against the Trump administration to reinstate former President Barack Obamas steep fuel-efficiency standards.
Maintaining Obamas fuel-efficiency standards would increase demand for Teslas electric cars and spur demand for electricity — economists usually describe these types of activities as rent-seeking.
Teslas move comes after California announced May 1 a lawsuit against President Donald Trump when EPA Administrator Scott Pruitt promised in April to review a set of Obama-era efficiency rules the auto industry considers too burdensome. (RELATED: California Sues Trumps EPA Over Move To Ding Obama-Era Fuel Efficiency Rules)
Trumps plans consisted of nixing a trove of his Democratic predecessors legacy, including Obamas move to increase fuel-efficiency rules.
Pruitts plan would also target Californias ability to set its own efficiency standards. The states rules have forced automakers to build more fuel-efficient vehicles, which ultimately affects national efficiency standards.
Teslas credit has gotten racked as the company continues missing crucial deadlines.
Moodys dropped Teslas credit rating in March and changed the companys outlook to negative as the fledgling Model 3s production dwindles while the automakers financial situation grows dim. (RELATED: Unusual: Elon Musk Appears To Have Nervous Breakdown During Bizarre Tesla Earnings Call)
Tesla will need to raise more money in the near future to meet its cash needs, the credit rating agency claimed. Moodys labeled the electric car marker a substantial risk for investors willing to dive headfirst into the auto market.
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