President Donald Trump is vaporizing an easy source of profit for his one-time “first buddy” and campaign donor Elon Musk.
America’s opaque but lucrative system of emissions credits is a windfall for Tesla — one that Trump has been busy dismantling. The president erased the biggest market for the credits in June when he signed a bill to revoke California’s vehicle emissions standard. Republicans then doubled down in the megalaw by removing any fines against automakers that don’t meet fuel economy standards.
The consequences may start weighing on Tesla as soon as Wednesday when the company reports its latest financial update.
“I think Tesla is going to take it on the tailpipe,” said Dan Becker, a transportation advocate at the nonprofit Center for Biological Diversity. “Elon Musk has made an unforced error that is going to cost Tesla a lot of money.”
